The Key Substantive Tests of Balances for the Long-Term Debt

question 29

Multiple Choice

The key substantive tests of balances for the long-term debt and owner's equity process include

• A)obtain a listing of the transactions of notes payable,long-term debt,and lines of credit
• B)obtain a listing of ending balance in the capital stock accounts
• C)obtain a schedule showing the ending balance in the retained earnings account and the accumulated other comprehensive income
• D)obtain a listing of the beginning balance of notes payable,long-term debt,and lines of credit
• E)obtain a schedule showing the transactions in the retained earnings account and the accumulated other comprehensive income
• F)both A and B
• G)both B and C
• H)both D and E

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Definitions:

Indirect Approach

The indirect approach involves presenting background and supportive information before revealing the main message or conclusion, often used in sensitive or controversial contexts.

Buffer

A temporary storage area used to manage data transfer between devices or processes that operate at different speeds or with different priorities.

Explanation

A statement or account that makes something clear by describing it in more detail or revealing relevant facts.

Positive Statement

A factual assertion that can be tested or verified, often used in economics to describe how the world is, as opposed to how it should be.