The existence or occurrence assertion, by its nature, extends only to physical assets such as cash and inventory.

Name: The existence or occurrence assertion, by its nature, extends only to physical assets such as cash and inventory.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The existence or occurrence assertion applies to all items on the financial statements, not just physical assets. It asserts that assets, liabilities, and transactions recorded in the financial statements actually exist and have occurred.

The Existence or Occurrence Assertion, by Its Nature, Extends Only