S1: Because there are usually few transactions in the cycle, control risk and the results of substantive tests of transactions are normally less important for designing tests of details of balances for bonds payable. S2: For most long-term liabilities, an important consideration is that they are properly authorized. * A. Both statements are false B. Only statement 2 is true C. Only statement 1 is true D. Both statements are true

S1: Because there are usually few transactions in the cycle, control risk and the results of substantive tests of transactions are normally less important for designing tests of details of balances for bonds payable. S2: For most long-term liabilities, an important consideration is that they are properly authorized. * A. Both statements are false B. Only statement 2 is true C. Only statement 1 is true D. Both statements are true

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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