The primary reason for preparing a reconciliation between interest-bearing obligations outstanding during the year and interest expense presented in the financial statements is to

Question

Quizplus · Accepted Answer

The primary reason for preparing a reconciliation between interest-bearing obligations outstanding during the year and interest expense presented in the financial statements is to detect unrecorded liabilities. This reconciliation will help ensure that all interest-bearing liabilities are properly recorded in the financial statements and any unrecorded liabilities are identified and recorded.

The Primary Reason for Preparing a Reconciliation Between Interest-Bearing Obligations