Which One of the Following Statements Is NOT Correct

question 42

Multiple Choice

Which one of the following statements is NOT correct?

• A) It would be a violation of the completeness assertion if management recorded a sale that did not take place.
• B) The completeness assertion deals with matters opposite the existence/occurrence assertion.
• C) The existence/occurrence assertion is concerned with amounts that should not have been included.
• D) The completeness assertion is concerned with the possibility of omitting items that should have been included in the financial statements.

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Definitions:

Entry of New Firms

The process by which new companies can enter an industry, often affecting competition levels, market share, and innovation.

Standardized Product

Goods or services that are uniform in quality and performance, making them interchangeable with similar products from different producers.

Pure Competition

A market structure characterized by an extremely large number of sellers, none of whom can control market prices or product quality, leading to a situation where products are homogeneous and businesses have no control over pricing.

U.S. Automobile Industry

A significant sector of the U.S. economy, involving the design, manufacture, and sale of motor vehicles within the United States.