Reconciling the Physical Asset Inventory with the Property Ledger on a Periodic

question 20

Multiple Choice

Reconciling the physical asset inventory with the property ledger on a periodic basis is a control related to which management assertion?

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

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Definitions:

Proxy-Imperfect

A substitute measure used in analysis or calculation that does not accurately represent the intended variable.

Fundamental Valuation

The process of determining the intrinsic value of a security, based on economic and financial analysis.

Accounting Measures

Quantitative financial information derived from an entity's accounting records, used to analyze its financial position, performance, and cash flows.

Operating Cash Flows

This refers to the cash generated from the primary business operations of a company, excluding financing or investing activities.