18 Questions
According to the passage, the management assertion of classification is defined as:
Transactions and events have been recorded in the proper accounts.
Which of the following is NOT a part of the management assertion of classification?
Transactions and events have been recorded in the correct accounting period.
Which of the following is the best description of the management assertion of classification?
Transactions and events have been recorded in the proper accounts.
Which of the following is NOT a management assertion related to classes of transactions and events for the period under audit?
Valuation
According to the passage, which of the following is the management assertion of cutoff?
Transactions and events that have been recorded have occurred and pertain to the entity.
Which of the following is a key difference between the management assertions of cutoff and classification?
Cutoff relates to the accounting period, while classification relates to the proper accounts.
What is the management assertion related to account balances at period end for the assertion of completeness?
All assets, liabilities, and equity interests that should have been recorded have been recorded.
What is the management assertion related to account balances at period end for the assertion of rights and obligations?
The entity holds or controls the rights to assets and the liabilities are the obligation of the entity.
Which management assertion of occurrence is related to classes of transactions and events for the period under audit?
Transactions and events have been recorded in the correct accounting period.
In the context of management assertions, what does the valuation and allocation assertion relate to?
All assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation adjustments are appropriately recorded.
Which management assertion focuses on whether all assets, liabilities, and equity interests exist?
Assets, liabilities, and equity interests exist.
Which management assertion ensures that all necessary items are included in financial statements at correct amounts?
All assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation adjustments are appropriately recorded.
Which of the following best describes the management assertion of classification?
Transactions and events have been recorded in the proper accounts
If a transaction was recorded in the wrong account, which management assertion would be violated?
Classification
Which of the following is NOT related to the management assertion of classification?
Transactions are recorded in the correct accounting period
If a company recorded a salary expense as an advertising expense, which management assertion would be violated?
Classification
Which of the following would be considered a misclassification error?
Recording a purchase of equipment as an expense
Which management assertion is concerned with whether transactions and events have been recorded in the proper accounts?
Classification
Test your knowledge of management assertions with this quiz question related to account balances at period end. Determine which assertion is related to the valuation and allocation of assets, liabilities, and equity interests.
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