Which of the Following Misstatements Is Not Related to the Completeness

question 11

Multiple Choice

Which of the following misstatements is not related to the completeness assertion for revenue?

• A)Goods are shipped, but revenue is not recorded.
• B)This year's revenue is recorded next year.
• C)Next year's revenue is recorded this year.
• D)Revenue is not recognized for services that have been performed.

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Definitions:

Lease Rate

The amount charged under a lease agreement for the use of an asset, often expressed as a payment amount per period.

Sales-Type Capital Lease

A leasing agreement in which the lessor recognizes immediate sales revenue and profit, reflecting the transaction as a sale rather than a rental.

Operating Lease

A lease agreement allowing the use of an asset but does not convey rights similar to ownership of the asset.

Direct Financing Capital Lease

A lease agreement where the lessor purchases an asset and leases it out to the lessee, earning interest revenue over the lease term.