Which of the Following Assertions Is the Primary Assertion That

question 25

Multiple Choice

Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?

• A)Rights.
• B)Valuation.
• C)Completeness.
• D)Existence.

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Definitions:

Creditor

An individual or institution to whom money is owed by the debtor or the borrower.

Cash Investment

Cash investment refers to funds invested into a business or market with the expectation of generating a financial return.

Accounting Equation

Represents the fundamental relationship in accounting: Assets = Liabilities + Equity, ensuring a balance in a company's financial statements.

Owner's Equity

The residual interest in the assets of the entity after subtracting liabilities, essentially representing the owner's claim against the company's assets.