Which Assertions May Be Tested for the "Transactions and Events

question 48

Multiple Choice

Which assertions may be tested for the "transactions and events" category of management assertions?

• A) Existence, completeness, rights and obligations, accuracy, cutoff and classification.
• B) Occurrence, completeness, rights and obligations, accuracy, cutoff and classification.
• C) Occurrence, completeness, authorization, accuracy, cutoff and classification.
• D) Existence, rights and obligations, accuracy, authorization, and completeness.

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead based on actual production levels.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard overhead estimated, based on the actual level of activity.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard variable overhead based on the actual level of activity, reflecting efficiency in using overhead resources.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead costs, based on efficient use of resources.