In auditing long term bonds payable
WebThe audit program in the area of bonds payable and other long-term debt would most likely involve a procedure to: Compare interest expense with the bonds payable balance for … WebIn auditing long-term bonds payable, an auditor most likely would: A. Perform analytical procedures on the bond premium and discount accounts. B. Examine documentation of …
In auditing long term bonds payable
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WebMar 13, 2024 · Amortizing Bonds Payable. If a bond is issued at a premium or at a discount, the amount will be amortized over the years through to its maturity. On issuance, a premium bond will create a “premium on bonds payable” balance. At every coupon payment, … WebThe auditors' program for the examination of long term debt should include steps that require the: Examination of any bond trust indenture. During an audit of a publicly-held company, the auditors should obtain written confirmation regarding debenture transactions from the: Trustee..
WebAuditing Debt Debt is simply liabilities, the amount the company owes to someone. Auditing of debt requires an understanding of complex debt instruments, classification of debt as … WebIt received $91,800 cash and recorded a Discount on Bonds Payable of $8,200. This amount will need to be amortized over the 5-year life of the bonds. Using the same format for an amortization table, but having received $91,800, interest payments are being made on $100,000. The cash interest payment is still the stated rate times the principal.
WebWhich of the following is the most important step in the auditor's program for the audit of bonds payable? A. Confirming the interest rate with the bond trustee. B. Tracing the cash received from the issue to the accounting records. C. Examining the bond agreement for a sinking fund provision. WebAuditing Debt — An Overview In many governments, nonprofits, and small businesses, debt is a significant part of total liabilities. Consequently, it is often a significant transaction …
WebVerifying the existence of the bondholders. In an audit of bonds payable, an auditor expects the trust indenture to include the a. Auditee’s debt-to-equity ratio at the same time of issuance b. Effective yield of the bonds issued c. Subscription list d. Description on the collateral In auditing long-term bonds payable, an auditor most likely ...
WebAn auditor’s program to audit long-term debt should include steps that require a. Examining bond trust indentures. b. Inspecting the accounts payable subsidiary ledger. c. Investigating credits to the bond interest income account. d. Verifying the existence of the bondholders. 2. greensky finance feeWebOne is the short term borrowing which is on current liabilities side while another one is the long term borrowing which is on non-current liabilities side. The main objective of the … greensky financial faqWebAccounts payable at year-end is a. Overstated by P716,940 b. Overstated by P666,940 c. Overstated by P516,940 d. Overstated by P466,940 2. The entry to adjust Voucher # 778 is a. Accounts payable 180,000 Loans payable 100,000 Interest payable 80,000 b. Accounts payable 180,000 Loans payable 100,000 Interest expense 80,000 c. Loans payable 100,000 greensky finance ratesWebIn auditing long-term bonds payable, an auditor most likely would: a. Perform analytical procedures on the bond premium and discount accounts. b. Compare interest expense … green sky finance logoWebIn auditing long-term bonds payable, an auditor MOST LIKELY will: Correct answer: Compare interest with the bond payable amount for reasonableness Question 3 An … fm town\u0027sWebSep 29, 2024 · In accounting, long-term liabilities are a company's financial obligations that are due more than one year in the future. more What Is a Solvency Ratio, and How Is It … greensky financial newsWebIn auditing for unrecorded long-term bonds payable, an audit team most likely willa. Perform analytical procedures on the bond premium and discount accounts.b. Examine documentation of assets purchased with bond proceeds for liens.c. Compare interest expense with the bond payable amount for reasonableness.d. greensky finance options