When Testing for the ________ Assertion, Auditors Ensure That All

question 57

Multiple Choice

When testing for the ________ assertion, auditors ensure that all items included in the financial statements are appropriately presented and disclosures are clearly expressed.

• A)classification and understandability
• B)cutoff
• C)presentation and disclosure
• D)occurrence

---

Definitions:

Present Value

The now-value of a prospective sum of money or cash flow sequence, according to a certain rate of return.

Rate of Return

The financial outcome, either positive or negative, of an investment within a set period, delineated as a proportion of the investment’s initial outlay.

Interest Rate

The percentage charged on a loan or paid on deposits over a period of time, often annually.

Future Value

The estimated value of an investment at a specific future date, considering factors like interest rates or returns over time.