The Inherent Risk of Proceeds from Stock Sales Not Being

question 110

Multiple Choice

The inherent risk of proceeds from stock sales not being received is most likely related to which of the following management assertions?

• A)Completeness.
• B)Presentation and disclosure.
• C)Valuation.
• D)Existence.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, which are recorded in the investing section of the cash flow statement.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Long-lived Assets

Assets that are expected to provide economic benefits over a period longer than one year, such as buildings or machinery.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the identifiable assets and liabilities.