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D. The first Thursday of the twelfth month
Answer: C
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An auditor's program to examine long-term debt should include steps that require:
A. Investigating credits to the bond interest income account.
B. Verifying the existence of the bondholders.
C. Examining bond trust indentures.
D. Inspecting the accounts payable subsidiary ledger.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. Examination of bond trust indentures should be included in audit program of long-
term debt to assure that the client was not in violation of any covenants in the indentures. Choice "B" is
incorrect. Inspecting the accounts payable subsidiary ledger relates to accounts payable, a current
liability.
Choice "C" is incorrect. Long-term debt generates interest expense, not interest income.
Choice "D" is incorrect. Generally, the existence of the bondholders of debt is not verified.
NEW QUESTION: 3
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Select and Place:
Answer:
Explanation:
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48