Only Three Management Assertions Are Associated with Transaction- Related Audit

question 102

Multiple Choice

Only three management assertions are associated with transaction- related audit objectives. Which one of the following is NOT?

• A) Valuation or allocation
• B) Completeness
• C) Existence or occurrence
• D) Presentation and disclosure

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Definitions:

Inventory Turnover Ratio

A metric indicating how often a company's inventory is sold and replaced over a specific period, useful in evaluating the efficiency of inventory management.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Current Ratio

A financial metric assessing a firm's capacity to settle debts due within a year by comparing its current assets to its current liabilities.