Assertions about account balances at the period end include
A) Existence, completeness, and accuracy.
B) Existence, completeness, and classification.
C) Existence, rights and obligations, and completeness.
D) Existence, rights and obligations, and classification.

Question

Quizplus · Accepted Answer

The assertions about account balances at the period end include existence, rights and obligations, and completeness. Existence ensures that the balances presented in the financial statements actually exist and are not fictitious. Rights and obligations ensure that the entity has a legal claim on assets and is responsible for liabilities. Completeness ensures that all transactions that should be recorded have been recorded and that all account balances are complete. Classification is not included as an assertion for account balances.

Assertions About Account Balances at the Period End Include