Management Makes the Following Assertions About Account Balances

question 136

Multiple Choice

Management makes the following assertions about account balances:

• A) existence, completeness, classification, and cutoff.
• B) existence, accuracy, classification, and rights and obligations.
• C) existence, completeness, valuation and allocation, and rights and obligations.
• D) existence, completeness, rights and obligations, and cutoff.

Know the differences in accounting treatments for capital and operational contributions.

Understand the accounting for volunteer services and donated assets.

Comprehend the encumbrance system for recording obligations.

Recognize the implications of board restrictions versus donor restrictions on contributions.

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Definitions:

Slaveholder

An individual or party that owns or held ownership rights in enslaved people.

Wilmot Proviso

An unsuccessful 1846 proposal in the United States Congress that aimed to ban slavery in territory acquired from Mexico in the Mexican War.

Appeal of the Independent Democrats

A document issued in 1854 criticizing the Kansas-Nebraska Act and advocating for anti-slavery policies.

Mexican War

A conflict between the United States and Mexico from 1846 to 1848, resulting in the U.S. annexing territory that includes present-day California, Arizona, and New Mexico.