Which of the Following Is not a Financial Statement Assertion

question 47

Multiple Choice

Which of the following is not a financial statement assertion relating to account balances?

• A)Completeness.
• B)Existence.
• C)Rights and obligations.
• D)Recorded value and discounts.

---

Definitions:

Actual Overhead

Represents the real costs associated with manufacturing overhead, including expenses such as rent, utilities, and equipment maintenance incurred during production.

Overhead Costs

The indirect costs associated with running a business that cannot be linked to a specific product or service.

Direct Materials

Raw materials that can be directly traced to a finished product and are a part of the manufacturing process.

Price Variance

The difference between the actual cost of a good or service and its expected cost, often used in budgeting and financial analysis.