Which of the Following Would Not Typically Be a Specific

question 62

Multiple Choice

Which of the following would not typically be a specific relevant assertion about fixed asset accounts?

• A)Fixed assets in the accounts exist and are in productive use.
• B)Net carrying book values in the accounts are reflected at current market values.
• C)Depreciation has been calculated properly using accepted methods and reasonable estimates of useful life and other factors.
• D)Fixed assets are properly classified in the balance sheet under appropriate descriptive captions.

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Definitions:

Quality Costs

Expenses related to ensuring products or services meet company and customer quality standards, including prevention, appraisal, and failure costs.

Appraisal Costs

Costs that are incurred to identify defective products before the products are shipped to customers.

Quality Costs

Expenses associated with preventing, detecting, and correcting defective work, including costs of inspections, tests, and warranties.

Prevention

Measures or actions taken to reduce the risk of errors, defects, or damages in a production process or operation.