Possible Misstatements Related to the Occurrence Assertion for Payroll Transactions

question 63

Multiple Choice

Possible misstatements related to the occurrence assertion for payroll transactions include all of the following except:

• A) Payments to fictitious employees.
• B) Payments to terminated employees.
• C) Payments to valid employees who have not worked.
• D) Payments to valid employees at a rate in excess of the authorized amount.

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Definitions:

Marginal Revenue

The additional income gained from selling one more unit of a good or service.

Cournot Duopoly

A model of competition between two firms, in which each firm decides the quantity to produce independently and simultaneously with the goal of maximizing profit.

Perfectly Competitive

A market structure characterized by a large number of small firms, all selling identical products, where no single firm can influence the market price.

Monopoly Price

The price a monopolist sets, which is typically higher than both marginal and average costs, maximizing profits due to lack of competition.