The Existence Assertion Pertains to Whether Items Included in Inventory

question 31

True/False

The existence assertion pertains to whether items included in inventory are valid but does not extend to whether the reported dollar amount is the correct amount for the inventory items.

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Definitions:

Historical Pattern

The recognition of persistent trends or occurrences in data or events over a specific period in the past, which can be used for forecasting future events.

Daily Sales

The total revenue or units of goods sold by a business within a single day.

EMV

Expected Monetary Value, a concept in risk management used to calculate the average outcome when the future includes scenarios that may or may not happen.

Setup Costs

The expenses incurred to prepare equipment or processes for manufacturing or production runs.