The Client May Use a Variety of Methods to Understate

question 11

Multiple Choice

The client may use a variety of methods to understate liabilities,interest expense and long-term debt.These include

• A)Recording capital leases as operating leases to avoid putting the liability on the balance sheet.
• B)Failing to disclose dates on long-term agreements.
• C)Failing to disclose special arrangements,such as transactions with special purpose entities.
• D)Failing to disclose related-party transactions.Debt associated with related-parties may carry a higher risk than debt associated with non-related parties.
• E)both A and B
• F)both A and D
• G)both D and E

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Definitions:

Legal Documents

Official papers that record agreements, rights, or responsibilities, often used in legal proceedings.

Paralegal

A legal assistant who performs many legal tasks under the supervision of an attorney.

Sexist Language

Language that discriminates against or stereotypes individuals based on their sex or gender, often by excluding, trivializing, or diminishing one gender.

Gender-neutral Pronoun

A pronoun not specifically associated with a particular gender, used to refer to people in a way that does not indicate gender, such as "they/them."