Which of the Following Is an Assertion

question 47

Multiple Choice

Which of the following is an assertion?

• A) A statement made by management regarding the collectability of accounts receivable.
• B) The audit firm's estimation of the client's inventory obsolescence.
• C) The statement by management regarding the appointment of auditors.
• D) The statement by management that the firm will close its branch office because of snow.

---

Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership stake of the shareholders.

Additional Paid-in Capital

The excess amount paid by investors over and above the par value of the shares during the issuance of stock.

Total Assets

The cumulative total of all a company's assets, both current and non-current.

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock, plus retained earnings or losses.