WebIn conclusion, while bonds payable are typically considered long-term financial obligations for accounting purposes because maturity dates exceed 12-months after issuance, circumstances like early repayment options and conversion features among others may necessitate reporting some portions thereof under shorter time frames depending on ... 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 …
Are Bonds Payable a Current Liability? 2024 - Ablison
WebRestricted Cash – The terms of the bonds payable require the School to establish cash accounts restricted for certain purposes including capital projects, debt service, and repair and replacement. Grants Receivable – Grants receivable relate primarily to activities funded under federal programs and legislation enacted by the State of Indiana. Web(Group 4) In 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 assets purchased with bond proceeds for liens. C. Compare interest expense with the bond payable amount for reasonableness. D. gold cat earrings
Long-Term Debt that Impacts an Audit - dummies
WebOne 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 … WebAn auditors 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. a. Examining bond trust indentures 17. hc8 reddit