Two of the Audit Objectives for Notes Payable Are Important

question 16

Multiple Choice

Two of the audit objectives for notes payable are important because a misstatement could be material even if one note is omitted or incorrect.Which assertions are they?

• A)completeness and valuation
• B)existence and completeness
• C)accuracy and existence
• D)completeness and accuracy

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Definitions:

Standard Product

A product that is uniform in quality and specifications, produced in large quantities, and often interchangeable with similar products from other manufacturers.

Highest Price

The maximum price at which a good, service, or asset is sold in the market, often influenced by factors such as scarcity, demand, and quality.

Pure Monopolist

An entity that is the sole provider of a particular product or service in a market, without any competitors, effectively controlling the market.

Increase Price

A strategy or action where the selling price of goods or services is raised to generate higher revenue or cope with increased costs.