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NEW QUESTION: 1
A user enters thl2 into a document date field. Which calendar date is the result of this entry?
A. Thursday in week number 12 in the current year
B. Next Thursday the twelfth day of the month in the current year
C. The first Thursday of the twelfth month
D. Next Thursday of the current week in 2012
Answer: A
NEW QUESTION: 2
An auditor's program to examine long-term debt should include steps that require:
A. Investigating credits to the bond interest income account.
B. Inspecting the accounts payable subsidiary ledger.
C. Examining bond trust indentures.
D. Verifying the existence of the bondholders.
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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