When an auditor observes that the recorded interest expense seems to be excessive inrelation to the balance in the bonds payable account, the auditor might suspect that(1) discount on bonds payable is understated.(2) bonds payable are understated.(3) bonds payable are overstated.(4) premium on bonds payable is overstated

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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When an auditor observes that the recorded interest expense seems to be excessive in
relation to the balance in the bonds payable account, the auditor might suspect that
(1) discount on bonds payable is understated.
(2) bonds payable are understated.
(3) bonds payable are overstated.
(4) premium on bonds payable is overstated

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