Which of the following is not a primary objective in the audit of interest-bearing debt?

A. Establish the completeness of recorded interest-bearing debt.
B. Determine that debt is properly valued.
C. Establish the legality of outstanding debt.
D. Determine that the presentation and disclosure of interest-bearing debt is appropriate.


Answer: C

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Swift Company paid $18,650 in advance for six months of rent. What journal entry will Swift prepare to record this transaction?

A. Debit Cash and credit Prepaid Rent for $18,650. B. Debit Cash and credit Deferred Rent for $18,650. C. Debit Rent Expense and credit Cash for $18,650. D. Debit Prepaid Rent and credit Cash for $18,650.

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A microwave link can carry a large percentage of the capacity of a fiber-optic strand.

Answer the following statement true (T) or false (F)

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A mixed decimal does not contain a whole number.

Answer the following statement true (T) or false (F)

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In addition to the government-wide statements, governments are required to prepare fund financial statements for governmental, proprietary and fiduciary funds.

Answer the following statement true (T) or false (F)

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