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ABC Company Has Issued a Bond That Pays 5% Interest

Question 35

Multiple Choice

ABC Company has issued a bond that pays 5% interest semiannually to bond holders on record June 30 and December 30.Payments are made on July 15 and January 15.ABC Company has a December 31 fiscal year-end.The auditor vouches the January 15,2018 payment to the liabilities recorded on the December 31,2017 balance sheet.Which of the following ASB balance assertions is the auditor testing?


A) Existence.
B) Rights and obligations.
C) Completeness.
D) Valuation.

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