Consider the Following Financial Statement Assertions

question 13

Multiple Choice

Consider the following financial statement assertions:
-Perform analytical procedures on investment balances.

• A)EO ? Existence or Occurrence
• B)VA ? Valuation or Allocation
• C)C ? Completeness
• D)RO ? Rights and Obligations
• E)PD ? Presentation and Disclosure
• F)EO, C and VA
• G)EO, VA, C, and PD
• H)EO, VA and RO
• I)EO, C and RO
• J)EO, VA, C, RO, and PD
• K)EO, VA, C and RO

---

Definitions:

Total Debt

The sum of all liabilities, both current and long-term, that a company owes to external parties.

Net Worth

The total assets minus total liabilities of an individual or company, indicating financial health and stability.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit a company makes after paying for variable costs of production but before paying interest or tax.

Depreciation Expenses

Depreciation expenses refer to the systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time.