Alpha Brewery Corporation recorded sales through January 4,2005,dating them December 31,2004.This situation is an example of a violation of which of the following assertions?
A) Existence or occurrence.
B) Completeness.
C) Classification.
D) Accuracy.

Question

Quizplus · Accepted Answer

The recording of sales in a different period is a violation of the completeness assertion, which requires that all transactions be recorded in the proper period to ensure that financial statements are complete and accurate. The existence or occurrence assertion relates to whether assets and liabilities exist, while classification refers to the proper categorization of transactions. Accuracy pertains to the correct amount being recorded.

Alpha Brewery Corporation Recorded Sales Through January 4,2005,dating Them December