Which of the Following Is the Assertion with the Highest

question 11

Multiple Choice

Which of the following is the assertion with the highest inherent risk in auditing inventory?

• A)Completeness.
• B)Rights.
• C)Existence.
• D)Properly classification on the balance sheet.

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Definitions:

Investment Turnover

It is a ratio used to measure the efficiency of a company in generating sales from its investments in assets.

Operating Income

A company's profit after deducting operating expenses such as wages and cost of goods sold, but before interest and taxes.

Residual Income

The net income an entity generates above its cost of capital, effectively measuring excess profits that exceed the minimum expected return.

Divisional Operating Income

The earnings generated from the operations of a specific division within a company, excluding costs and income from other divisions or corporate activities.