The specific financing cycle audit objective, long-term debt and related income statement balances and stockholders' equity balances are properly identified and classified in the financial statements, relates to the: A) rights and obligations assertion. B) completeness assertion. C) existence or occurrence assertion. D) valuation or allocation assertion. E) presentation or disclosure assertion.

Question

Quizplus · Accepted Answer

This objective relates to the presentation or disclosure assertion because it concerns ensuring that long-term debt, related income statement balances, and stockholders' equity balances are correctly identified and classified in the financial statements. This assertion deals with whether financial information is appropriately presented and disclosed in accordance with the applicable financial reporting framework.

The Specific Financing Cycle Audit Objective, long-Term Debt and Related