The specific financing cycle audit objective, long-term debt and related income statement balances and stockholders' equity balances are properly valued in accordance with GAAP, 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

The objective relates to ensuring that long-term debt, related income statement balances, and stockholders' equity balances are accurately valued and allocated in the financial statements, which aligns with the valuation or allocation assertion. This assertion concerns whether assets, liabilities, equity, revenue, and expenses are included in the financial statements at appropriate amounts.

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