The Following Are a Number of ASB Management Assertions

question 70

Essay

The following are a number of ASB management assertions.
A.Occurrence
B.Completeness
C.Rights and obligations
D.Allocation or valuation
E.Classification
F.Existence
G.Cutoff
H.Accuracy
I.Understandability
For each of the following control activities,place the letter of the preceding management assertion that best applies to each of the following controls in the blank space.
_____ 1.Matching shipping documents with sales invoices before a sale is recorded.
_____ 2.Balancing the total of individual customers' receivables with the control account.
_____ 3.Obtaining sales manager's approval of taking discounts.
_____ 4.Doing a computer check for billing the quantity shipped,list price,and total.
_____ 5.Accounting for numerical sequence of prenumbered shipping documents.

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Definitions:

Disposable Income

The amount of money individuals have available to spend and save after taxes have been deducted from their income.

Economize

The action of reducing expenditure or efficiently managing resources to avoid waste and save money.

Foreclose

The legal process by which a lender takes control of a property from a borrower due to failure to meet the repayment terms of a loan.

Defaulted

Defaulted refers to the failure to fulfill an obligation, especially the failure to repay a loan on time or to meet a contractual condition, leading to possible legal penalties or loss of rights.