Which of the following is an example of the classification and understandability assertion?
A) All disclosures that should have been included in the financial statements have been included.
B) Financial and other information is appropriately presented and described, and disclosures are clearly expressed.
C) Disclosed events and transactions have occurred and pertain to the entity.
D) Transactions and events have been recorded in the correct accounting period.

Question

Quizplus · Accepted Answer

The classification and understandability assertion is related to the presentation and disclosure of financial information in a clear and meaningful way. Option B directly addresses this assertion by stating that financial and other information is appropriately presented and described, and disclosures are clearly expressed. Options A, C, and D relate to other assertions such as completeness, occurrence, and accuracy.

Which of the Following Is an Example of the Classification