Management Assertions Quiz Question

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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?

Valuation (B) Signup and view all the answers

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. (A) Signup and view all the answers

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. (C) Signup and view all the answers

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. (B) 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?

The entity holds or controls the rights to assets and the liabilities are the obligation of the entity. (C) Signup and view all the answers

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. (D) Signup and view all the answers

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. (A) Signup and view all the answers

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

Assets, liabilities, and equity interests exist. (A) Signup and view all the answers

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. (B) Signup and view all the answers

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

Transactions and events have been recorded in the proper accounts (C) Signup and view all the answers

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

Classification (D) Signup and view all the answers

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

Transactions are recorded in the correct accounting period (A) Signup and view all the answers

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

Classification (A) Signup and view all the answers

Which of the following would be considered a misclassification error?

Recording a purchase of equipment as an expense (D) Signup and view all the answers

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

Classification (B) Signup and view all the answers