If recorded interest expense is higher than the auditor's expectation calculated using recorded debt, all of the following are potential explanations except that
A. The entity failed to record debt.
B. Debt was recorded as equity.
C. The entity used the face interest rate to calculate interest expense on a bond issued at a discount.
D. The entity used the face interest rate to calculate interest expense on a bond issued at a premium.
D. The entity used the face interest rate to calculate interest expense on a bond issued at a premium.
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Innovate Company borrowed on a one-year, 10%, $150,000 note on May 1, 2014 with interest and principal to be paid at maturity. How much interest should Innovate Company report on its income statement for the year ending December 31, 2015?
a. $ 10,000 b. $ 15,000 c. $ 30,000 d. $ 5,000
Javier buys a 3D TV and a DVR from West Coast Sales. West Coast agrees to lend him 90 percent of the purchase price. Their agreement is known as a(n): ______
A) a purchase money security interest. B)a future transaction. C)a floating lien. D)transferred collateral interest.
Oversight activities include ________
A) vulnerability testing B) creating guidelines C) both A and B D) neither A nor B
True or False With other factors unchanged, a higher confidence level will require a narrower confidence interval
Indicate whether the statement is true or false