Which of the following statements is NOT true?
A) An example of a valuation/allocation assertion would be that property, plant and equipment are listed in the noncurrent section of the Balance Sheet.
B) An example of an existence/occurrence assertion would be that sales in the income statement represent exchanges of goods or services that actually took place.
C) An example of a completeness assertion would be that the notes payable account in the balance sheet includes all such obligations of the entity.
D) An example of a rights/obligations assertion would be that amounts capitalised for leases in the balance sheet represent the cost of the entity's rights to leased property.

Question

Quizplus · Accepted Answer

The statement that property, plant and equipment are listed in the noncurrent section of the Balance Sheet is an example of a classification assertion, not a valuation/allocation assertion. Valuation/allocation assertion would refer to whether the values assigned to assets and liabilities are reasonable and in accordance with accounting principles.

Which of the Following Statements Is NOT True