The Specific Audit Objective, cash Balances Are Properly Identified and Classified

question 78

Multiple Choice

The specific audit objective, cash balances are properly identified and classified in the balance sheet, is derived from the:

• A) existence or occurrence assertion.
• B) completeness assertion.
• C) rights and obligations assertion.
• D) valuation or allocation assertion.
• E) presentation or disclosure assertion.

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Definitions:

Freedom to Farm Act

A U.S. law enacted in 1996 that aimed to phase out various agricultural subsidies and reduce federal regulation of farming, thereby allowing farmers more freedom in making planting decisions.

Price-Support Payments

Government subsidies provided to farmers or producers to maintain the market price of an agricultural product above its competitive equilibrium level.

Family Farm

A farm owned and operated by a family, typically passed down through generations, as opposed to corporate farms owned by companies.

Great Depression

A severe worldwide economic downturn that lasted from 1929 until the early 1940s, marked by massive unemployment and deflation.