If a Short-Term Note Payable Is Included in the Accounts

question 102

Multiple Choice

If a short-term note payable is included in the accounts payable balance on the financial statement, there is a violation of the

• A) completeness assertion.
• B) existence assertion.
• C) cutoff assertion.
• D) classification assertion.

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Definitions:

Recover Cost

entails obtaining reimbursement for funds that have been expended for a specific purpose, often through legal or contractual means.

Express Terms

Clearly stated conditions and stipulations in a contract, either orally or in writing, that outline the specific obligations of the parties involved.

Course of Performance

A sequence of conduct between parties to a contract that is relevant to determining their rights and duties under that agreement.

Usage of Trade

Established practices or methods commonly accepted and widely adopted in a particular industry or commerce.