Two Accounts Receivable Balance-Related Audit Objectives Are Not Affected by Assessed

question 132

Multiple Choice

Two accounts receivable balance-related audit objectives are not affected by assessed control risk for the sales and cash receipts classes of transactions.These objectives are

• A)valuation;allocation.
• B)allocation;rights and obligations.
• C)valuation;rights and obligations.
• D)accuracy;existence.

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, serving as an indicator of inflation.

Equation of Exchange

An economic formula representing the relationship between the money supply, the velocity of money, the price level, and the number of transactions in an economy.

Money Supply

The entire stock of money assets in an economy at a specified period.

Velocity of Money

The rate at which money is exchanged in an economy and is used to measure the activity level of economic transactions.