Key Control Procedures for the Long-Term Debt and Owner's Equity

question 25

Multiple Choice

Key control procedures for the long-term debt and owner's equity process are

• A)independence of duties
• B)authorization procedures
• C)documented transaction trails
• D)segregated reconciliations
• E)physical controls that allow access to assets
• F)both A and B
• G)both B and C
• H)both D and E

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Definitions:

360-Day Year

A simplified calculation method used in finance, assuming a year consists of 360 days for the purpose of interest calculation.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment, based on the original amount without compounding.

360-Day Year

An accounting method that simplifies interest calculations by using 360 days as the length of a year.

Loan Period

The duration over which a borrower is obligated to repay a loan, typically specified in months or years.