Which of the Following Isnot a Primary Objective in the Audit

question 36

Multiple Choice

Which of the following isnot a primary objective in the audit of interest-bearing debt?

• A)Establish the completeness of recorded interest-bearing debt.
• B)Establish the legality of outstanding debt.
• C)Determine that debt is properly valued.
• D)Determine that the presentation and disclosure of interest-bearing debt is appropriate.

---

Definitions:

Unadjusted Trial Balance

A listing of all accounts in the general ledger with their balances before any adjustments are made for the end of the accounting period.

Drawing Account

A drawing account is used to track the money or goods withdrawn by the business owner for personal use from the business.

Net Loss

The amount by which total expenses exceed total revenues in a business, indicating a negative financial performance over a specific period.

Income Statement Columns

This refers to the structured segments in an income statement or profit and loss account, showing revenues, expenses, and profits or losses of an entity over a specific period.