Which of the following is an example of accounts that can be audited simultaneously?

When considering which accounts can be audited simultaneously, it is important to recognize the relationships between the accounts being audited. The relationship between long-term liabilities and interest expense is particularly relevant here because interest expense is typically calculated based on the outstanding balance of long-term liabilities, such as loans or bonds payable.

Auditing these two accounts together allows the auditor to ensure that the interest expense recorded in the financial statements accurately reflects the obligations recorded as long-term liabilities. This simultaneous audit can provide insights into how the company manages its debt and how that management impacts the financial statements, particularly in relation to interest recognized during the period.

In contrast, other options may not have a direct relationship that would necessitate or benefit from simultaneous auditing. For example, cash flow and equity deal with different aspects of financial reporting: cash flow focuses on the inflow and outflow of cash, while equity pertains to ownership and investments. Likewise, long-term liabilities and capital assets are not directly connected as they serve different purposes on the balance sheet, even though they can be audited individually for completeness and accuracy. Similar reasoning applies to inventory and sales revenue, which, while related, do not have the same direct connection as long-term liabilities and interest expense when it comes to audit processes.