During the Course of an Audit, a CPA Observes That

Multiple Choice

During the course of an audit, a CPA observes that the recorded interest expense seems to be excessive in relation to the balance in the long-term debt account. This observation could lead the auditor to suspect that

A) Long-term debt is understated.
B) Discount on bonds payable is overstated.
C) Long-term debt is overstated.
D) Premium on bonds payable is understated.