Which ASB Balance Assertion Is of the Most Importance to Auditors

question 54

Multiple Choice

Which ASB balance assertion is of the most importance to auditors for long-term liabilities?

• A)Existence
• B)Completeness
• C)Rights and obligations
• D)Valuation

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Definitions:

Operating Expenses

Costs associated with the day-to-day functions of a business excluding the cost of goods sold.

Fiscal Year

A fiscal year is a one-year period designated for accounting and financial reporting purposes, differing from the traditional calendar year.

Ledger

The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Accounting Equation

A fundamental principle of accounting representing the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).