The Inherent Risk of Proceeds from Stock Sales Not Being

question 110

Multiple Choice

The inherent risk of proceeds from stock sales not being received is most likely related to which of the following management assertions?

• A)Completeness.
• B)Presentation and disclosure.
• C)Valuation.
• D)Existence.

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Definitions:

Cost of Goods Sold

The direct costs associated with producing goods that have been sold, including materials and labor.

Standard Cost System

An accounting method that uses predetermined costs for products and services to help managers control expenses and operations.

Labor Rate Variance

The variance between the real labor expenses and the anticipated (or benchmark) cost.

Labor Efficiency Variance

The gap between the number of hours actually worked and the number of standard hours projected, multiplied by the standard wage rate.