Reviewing Interest Expense to Identify Payments to Debt-Holders Not Listed

question 64

Multiple Choice

Reviewing interest expense to identify payments to debt-holders not listed on the debt analysis schedule is a procedure that can be used to provide evidence for which audit assertion for loans payable:

• A)existence.
• B)completeness.
• C)cut-off.
• D)accuracy.

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Definitions:

Landlords

Property owners who rent out land, residential, or commercial properties to tenants.

Present Value

The value today of the stream of expected future annual income that a property generates.

Interest Rate

Interest paid divided by amount borrowed.

Economic Rent

The excess payment to a resource above what it is necessary to pay to secure its use.