For Cash Receipts,the Occurrence Transaction-Related Audit Objective Affects the Completeness

question 52

Multiple Choice

For cash receipts,the occurrence transaction-related audit objective affects the completeness balance-related audit objective of accounts receivable.Which accounts receivable balance-related audit objective does the cash receipts transaction-related audit objective of completeness affect?

• A)allocation
• B)completeness
• C)rights and obligations
• D)existence

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information available, the cognitive limitations of individuals, and the finite amount of time they have to make a decision.

Good Enough

A term that refers to a satisfactory solution or product that meets basic requirements without needing to be perfect.

Sunk Costs

Expenses that have been incurred and cannot be recovered, which should not influence future economic decisions.

Production

The process of creating goods or services using inputs like labor, capital, and raw materials.