Solved

Match Each of the Following Controls with the Assertion for Long-Term

Question 65

Matching

Match each of the following controls with the assertion for long-term debt that it supports.

Premises:

Responses:

Valuation

Premiums and discounts on bond and notes payables are properly amortized using the effective interest rate method

Occurrence and Authorization

A subsidiary ledger is maintained that contains information about all the long-term debt and the amount recorded in this ledger is reconciled to the general ledger

Disclosure - Classification

Any significant debt commitments are approved by the board of directors or delegated executives

Completeness

The portion of long-term debt due in the next year is classified as a short-term liability

Premises:

Valuation

Occurrence and Authorization

Disclosure - Classification

Completeness

Responses:

Premiums and discounts on bond and notes payables are properly amortized using the effective interest rate method

A subsidiary ledger is maintained that contains information about all the long-term debt and the amount recorded in this ledger is reconciled to the general ledger

Any significant debt commitments are approved by the board of directors or delegated executives

The portion of long-term debt due in the next year is classified as a short-term liability

Correct Answer:

Premises:

Responses:

Valuation

Occurrence and Authorization

Disclosure - Classification

Completeness

Related Questions

Q31: Which of the following is the most

Q48: What kind of information would typically be