Which of the Following Statements Is True About the Completeness

question 55

Multiple Choice

Which of the following statements is true about the completeness and occurrence assertions?

• A)Both assertions are relevant to classes of transactions and events and account balances.
• B)If management asserts that recorded sales transactions represent exchanges of goods or services that actually took place, they are asserting to completeness.
• C)Violations of the occurrence assertion relate to account overstatements.
• D)The failure to record a sale that did occur is a violation of the occurrence assertion.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of investments.

Variance

A measure of the spread of a set of values, calculated as the average of the squared deviations from the mean.

Index Funds

Mutual funds or ETFs designed to track the components of a market index, offering broad market exposure and low operating expenses.

Expected Monetary Value

A statistical concept that calculates the average outcome of a future event that may or may not happen, taking into account all possible scenarios and their probabilities.