In the Context of Assertions About Classes of Transactions and Events

question 106

Multiple Choice

In the context of assertions about classes of transactions and events for the period under audit, auditors considering occurrence gather evidence to verify that _______.

• A)a recorded transaction or event, such as a revenue or an expense item, actually took place and relates to the entity
• B)all transactions have been recorded and the financial statements are not understated or overstated because transactions have been omitted
• C)transactions and events have been recorded at appropriate amounts
• D)transactions and events have been recorded in the proper accounts

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Definitions:

Unit Product Cost

The cost incurred to produce a single unit of product, inclusive of direct materials, direct labor, and manufacturing overhead.

Job T687

This could refer to a specific task, project, or product order within a job costing system, identified by the number T687.

Selling Price

The price at which a product or service is offered for sale to customers.

Unit Product Costs

The overall expense incurred to manufacture a single product unit, encompassing direct materials, direct labor, and distributed overhead costs.