Management Assertions Quiz Question
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Questions and Answers

According to the passage, the management assertion of classification is defined as:

  • Transactions and events that have been recorded have occurred and pertain to the entity.
  • Transactions and events have been recorded in the proper accounts. (correct)
  • Amounts and other data relating to recorded transactions and events have been recorded appropriately.
  • All transactions and events that should have been recorded have been recorded.

    • Which of the following is NOT a part of the management assertion of classification?

  • All transactions and events that should have been recorded have been recorded.
  • Transactions and events have been recorded in the correct accounting period. (correct)
  • Amounts and other data relating to recorded transactions and events have been recorded appropriately.
  • Transactions and events that have been recorded have occurred and pertain to the entity.

    • Which of the following is the best description of the management assertion of classification?

  • Transactions and events that have been recorded have occurred and pertain to the entity.
  • Transactions and events have been recorded in the proper accounts. (correct)
  • All transactions and events that should have been recorded have been recorded.
  • Amounts and other data relating to recorded transactions and events have been recorded appropriately.

    • Which of the following is NOT a management assertion related to classes of transactions and events for the period under audit?

    <p>Valuation</p> Signup and view all the answers

    According to the passage, which of the following is the management assertion of cutoff?

    <p>Transactions and events that have been recorded have occurred and pertain to the entity.</p> Signup and view all the answers

    Which of the following is a key difference between the management assertions of cutoff and classification?

    <p>Cutoff relates to the accounting period, while classification relates to the proper accounts.</p> Signup and view all the answers

    What is the management assertion related to account balances at period end for the assertion of completeness?

    <p>All assets, liabilities, and equity interests that should have been recorded have been recorded.</p> Signup and view all the answers

    What is the management assertion related to account balances at period end for the assertion of rights and obligations?

    <p>The entity holds or controls the rights to assets and the liabilities are the obligation of the entity.</p> Signup and view all the answers

    Which management assertion of occurrence is related to classes of transactions and events for the period under audit?

    <p>Transactions and events have been recorded in the correct accounting period.</p> Signup and view all the answers

    In the context of management assertions, what does the valuation and allocation assertion relate to?

    <p>All assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation adjustments are appropriately recorded.</p> Signup and view all the answers

    Which management assertion focuses on whether all assets, liabilities, and equity interests exist?

    <p>Assets, liabilities, and equity interests exist.</p> Signup and view all the answers

    Which management assertion ensures that all necessary items are included in financial statements at correct amounts?

    <p>All assets, liabilities, and equity interests are included in the financial statements at appropriate amounts and any resulting valuation adjustments are appropriately recorded.</p> Signup and view all the answers

    Which of the following best describes the management assertion of classification?

    <p>Transactions and events have been recorded in the proper accounts</p> Signup and view all the answers

    If a transaction was recorded in the wrong account, which management assertion would be violated?

    <p>Classification</p> Signup and view all the answers

    Which of the following is NOT related to the management assertion of classification?

    <p>Transactions are recorded in the correct accounting period</p> Signup and view all the answers

    If a company recorded a salary expense as an advertising expense, which management assertion would be violated?

    <p>Classification</p> Signup and view all the answers

    Which of the following would be considered a misclassification error?

    <p>Recording a purchase of equipment as an expense</p> Signup and view all the answers

    Which management assertion is concerned with whether transactions and events have been recorded in the proper accounts?

    <p>Classification</p> Signup and view all the answers

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