A Control Which Ensures That Long-Term Borrowing Is Properly Initiated

question 43

Multiple Choice

A control which ensures that long-term borrowing is properly initiated by appropriate individuals addresses the control assertion of

• A) Occurrence.
• B) Authorization.
• C) Completeness.
• D) Valuation.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period, included on the income statement.

Semi-Annually

Occurring twice a year or every six months, typically used in relation to payments, reports, or interest accruals.

Instalment Payments

Payments made regularly over a period of time to settle a debt.

Periodic Amounts

Regularly scheduled payments or receipts over a defined period.