Which of the Following Management Assertions Is NOT Relevant to Inventory

question 83

Multiple Choice

Which of the following management assertions is NOT relevant to inventory?

• A)Existence or occurrence.
• B)Completeness.
• C)Rights and obligations.
• D)Reporting.

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Definitions:

Honoring a Note

The act of paying off a note payable or bond at its maturity, fulfilling the issuer's obligation.

Note Receivable

A note receivable is a financial asset representing a written promise to receive a specific amount of money, with interest, from another party by a certain date.

Percent of Sales Method

A financial analysis tool used to forecast future expenses or accounts such as bad debts, based on a percentage of sales.

Bad Debts Expense

Represents the amount of accounts receivable a business does not expect to collect and charges off as a loss in its financial statements.