Which of the following misstatements is not related to the completeness assertion for revenue?
A)Goods are shipped, but revenue is not recorded.
B)This year's revenue is recorded next year.
C)Next year's revenue is recorded this year.
D)Revenue is not recognized for services that have been performed.

Question

Quizplus · Accepted Answer

The completeness assertion for revenue is concerned with ensuring that all revenue transactions that should have been recorded have indeed been recorded. Option C, "Next year's revenue is recorded this year," relates to the accuracy or cutoff assertion, not completeness. It involves recording revenue in the wrong period, rather than failing to record revenue that should have been recorded.

Which of the Following Misstatements Is Not Related to the Completeness