Confirmation Would Be Most Effective in Addressing the Existence Assertion

question 73

Multiple Choice

Confirmation would be most effective in addressing the existence assertion for the:

• A)Addition of a milling machine to a machine shop.
• B)Payment of payroll during regular course of business.
• C)Inventory held on consignment.
• D)Granting of a patent for a special process developed by the organization.

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Definitions:

Warranty of Merchantability

A guarantee implied by law that a product sold will meet certain quality and performance standards.

Vet Bills

Expenses incurred for medical treatment, surgeries, medications, and general healthcare provided by veterinarians to animals.

Merchantable

Refers to goods being fit for the purpose for which they are sold, meeting the buyer's reasonable expectations.

Variation

A change or difference in condition, amount, or level, typically with certain limits.