Testing the inventory pricing relates primarily to the:
A) existence or occurrence assertion.
B) completeness assertion.
C) rights and obligations assertion.
D) presentation or disclosure assertion.
E) valuation or allocation assertion.

Question

Quizplus · Accepted Answer

Testing the inventory pricing primarily relates to the valuation or allocation assertion. This assertion concerns whether inventory is valued correctly in the financial statements, including considerations of cost and any necessary write-downs to net realizable value.

Testing the Inventory Pricing Relates Primarily to The