When reporting inventory, management claims that the items exist, are owned by the entity, represent a complete list of the inventory owned, and are valued appropriately.These are examples of _______.
A)Assertions
B)Accounting records
C)Negative confirmation
D)Positive confirmation

Question

Quizplus · Accepted Answer

These statements are examples of assertions, which are the claims made by management about the accuracy and completeness of financial statements. Accounting records are the documents used to record financial transactions, while negative and positive confirmation are methods of gathering audit evidence.

When Reporting Inventory, Management Claims That the Items Exist, Are