Technically, what is meant by the amortization of a bond discount, and why is it necessary?
Amortization of a bond discount is the periodic conversion of unamortized bond discount into interest expense. A bond discount in reality is additional interest. Accordingly, the matching rule dictates that this interest expense be recorded over the period of benefit (life of the bond).
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Which of the following items is not a control plan of the AP/CD process?
a. check for authorized prices, terms, freight, and discounts b. independent validation of vendor invoices c. independent authorization to make payment d. reconcile bank account
In terms of online metrics, which evaluation method allows companies to gauge consumer reactions to a new advertising campaign, whether it is online or traditional?
A) click-through rate B) copytesting C) emotional reaction tests D) monitoring web chatter
Provide a definition for each of the following accounting principles.
An inventory record indicates that 12 items of a specific product are on hand. A customer purchased two of the items, but when recording the order, the data entry clerk mistakenly entered 20 items sold. Which check could detect this error?
a. numeric/alphabetic data checks b. limit check c. range check d. reasonableness check