The Balance Sheet for a Client Shows a Balance of $5,000

question 31

Multiple Choice

The balance sheet for a client shows a balance of $5,000. This is an example of which assertion:

• A) completeness.
• B) right and obligations.
• C) valuation and allocation.
• D) All of the above.

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Definitions:

Restricted Fund

Denotes funds that are earmarked for a specific purpose by donors or grantors, limiting their use to certain activities or projects.

Investment Income

The money that an individual or entity earns from various investments, such as dividends, interest, or rental income.

Net Assets

The total assets of a company minus its total liabilities, representing the shareholders' equity in the company.

Deferral Method

An accounting practice where revenue or expenses are recognized at a later date than when they were initially incurred, aligning income with the periods in which the related cash flow occurs.