The Two Most Important Balance Related Objectives in Notes Payable

question 45

Multiple Choice

The two most important balance related objectives in notes payable are:

• A)completeness and accuracy.
• B)existence and completeness.
• C)accuracy and classification.
• D)existence and occurrence.

---

Definitions:

Conversion of Bonds

The process where bondholders can exchange their bonds for a predetermined number of shares in the issuing corporation.

Plant Assets

Long-term tangible assets that are used in the operation of a business and are not intended for sale.

Transactions

The economic events of a business that are recorded by accountants.

Revenues and Expenses

Financial metrics reflecting the income earned from normal business operations and the costs incurred to generate that income, respectively.