You Did Not Understand What the Term Accrual Meant and Failed

question 76

Multiple Choice

You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds. Which IMA guideline has been violated?

• A) Integrity
• B) Confidentiality
• C) Competence
• D) Objectivity

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Definitions:

Semiannual Interest

Interest that is computed and disbursed semi-annually, commonly linked with loans or bonds.

Journal Entry

A record of financial transactions entered in a journal, a fundamental part of the double-entry bookkeeping system.

Carrying Value

Carrying value, or book value, is the net amount at which an asset or liability is valued on a balance sheet, factoring in its original cost minus depreciation, amortization, or impairment costs.