Substantive Tests of Balances Are Performed to Gather Evidence on

question 60

Multiple Choice

Substantive tests of balances are performed to gather evidence on

• A)income statement accounts
• B)balance sheet accounts
• C)depreciation expense
• D)salaries expense

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Definitions:

Par Value

The stated value of a bond, stock share, or coupon as declared by the issuer.

Annual Coupon

The interest payment distributed each year to holders of bonds, generally represented as a percentage of the bond's principal amount.

Maturity

The date on which the principal amount of a note, draft, acceptance bond, or another debt instrument becomes due and is repaid to the investor.

Market Interest Rate

The prevailing rate of interest that is available in the market for savings, loans, and investments.