Which of the Following Is NOT One of the Five

question 54

Multiple Choice

Which of the following is NOT one of the five broad categories of assertions, as adapted from ASA 315?

• A) existence or occurrence
• B) presentation and disclosure
• C) valuation or allocation
• D) general or specific transaction objectives

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Definitions:

Net Operating Income

A financial metric that shows how much profit a company generates from its core business operations, excluding expenses from interest and taxes.

Absorption Costing

An accounting practice that includes the total manufacturing costs, which are direct materials, direct labor, and manufacturing overhead (both variable and fixed), in the valuation of a product.

Net Operating Income

A financial metric representing a company's income after operating expenses but before interest and taxes.

Absorption Costing

A bookkeeping approach that incorporates all production expenses—direct materials, direct labor, and both variable and fixed overhead—into the product's cost.