When Auditing Liabilities Account Balances,auditors Are Most Concerned with Management

question 93

Multiple Choice

When auditing liabilities account balances,auditors are most concerned with management' assertion about

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

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Definitions:

Half Year Rule

A tax regulation in some jurisdictions that allows for only half of the applicable depreciation expense to be claimed in the year that an asset is purchased.

UCC

Refers to the Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Cash Flow

The net amount of cash being transferred into and out of a business, especially affecting liquidity.