Which assertion is most closely related to the determination of the adequacy of the allowance for doubtful accounts?
A)Existence.
B)Valuation.
C)Rights and Obligations.
D)Presentation and Disclosure.

Question

Quizplus · Accepted Answer

The determination of the adequacy of the allowance for doubtful accounts is related to the valuation assertion, which involves verifying that assets and liabilities are recorded at appropriate amounts. The allowance for doubtful accounts is an estimate of the amount of accounts receivable that may not be collectible, and it must be evaluated regularly to ensure that it is sufficient to cover potential losses.

Which Assertion Is Most Closely Related to the Determination of the Adequacy