There is a direct relationship between the interest and dividend accounts and debt and equity.This means that in the audit of interest-bearing debt,it is desirable to simultaneously verify

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The direct relationship between the interest and dividend accounts and debt and equity implies that when verifying interest-bearing debt, it is necessary to verify the related interest expense and interest payable. This will help ensure that the relevant accounts are accurately reflected in the financial statements. Option A is incorrect because dividends declared and payable are related to equity, not debt, accounts. Option C is incorrect because while long-term contracts and commitments may impact the financial statements, they are not directly related to interest-bearing debt. Option D is incorrect because board of directors' minutes are not usually relevant to the verification of interest-bearing debt.

There Is a Direct Relationship Between the Interest and Dividend