The Audit Objective, "The Accounts Receivable Balance Represents Gross Claims

question 5

Multiple Choice

The audit objective, "The accounts receivable balance represents gross claims on customers and agrees with the sum of the accounts receivable subsidiary ledger" is derived from the assertion of:

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

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Definitions:

Add

To combine one thing with another so as to increase the size, number, or amount.

Assumption

A premise or statement taken to be true without evidence for the sake of argument or investigation.

UI

Universal Instantiation, a logical rule of inference stating if something is true for everything in a category, it is true for any specific instance of that category.

Quantifier-Negation Rule

A principle in formal logic that deals with the relationship between quantifiers and the negation of statements.