Which Set of Assertions Is Tested When,during Completion of the Audit,the

question 89

Multiple Choice

Which set of assertions is tested when,during completion of the audit,the audit partner conducts a final review of the format of the entity's balance sheet?

• A) Assertions about classes of transactions and events.
• B) Assertions about account balances at the period end.
• C) Assertions about presentation and disclosure.
• D) None of these.

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Definitions:

Resale Proceeds

The amount of money received from selling an asset that was previously purchased.

Price-Earnings Ratio

A valuation measure comparing the current share price of a company to its per-share earnings, used to evaluate if a stock is over or undervalued.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Selling Bonds

The act of offering bonds to investors as a way to raise funds; bonds are debt securities under which the issuer owes the holders a debt.