Which Audit Assertion Relates to Ensuring That All Recorded Sales

question 12

Multiple Choice

Which audit assertion relates to ensuring that all recorded sales are valid?

• A) Existence.
• B) Completeness.
• C) Occurrence.
• D) Valuation and allocation.

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Definitions:

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied twice a year.

Amortization Period

Refers to the total time taken to pay off a debt in regular installments until the loan amount and interest are paid in full.

Compounded Semi-annually

The method of determining interest by adding it to both the original amount of money deposited or borrowed and the interest that has already been added over two periods within a year.

Amortization

The process of paying off a debt over time through regular payments.