An Effective Accounting System Should Identify and Record Only the Valid

question 45

Multiple Choice

An effective accounting system should identify and record only the valid transaction of the entity that occurred in the current period, which relates to the:

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

---

Definitions:

Predictable Outcomes

Results or consequences that can be anticipated due to known factors, patterns, or previous observations.

Linguistic Fixedness Hypothesis

The idea that language shapes thinking and limits cognitive flexibility, influencing how individuals perceive and solve problems.

Wallach And Kogan

Researchers known for their work on creativity, developing tests to measure creative thinking and problem-solving abilities.

Animals Communicate

The various ways in which animals exchange information, signals, or messages among each other to influence behavior.