If the Auditor Is Testing Long-Lived Asset Account Balances to See

question 55

Multiple Choice

If the auditor is testing long-lived asset account balances to see if they include all relevant transactions that have taken place during the period,what is the primary assertion being tested?

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

Comprehend the structure and elements of the balance sheet equation.

Analyze and determine net cash flow from investing activities based on changes in cash balance and cash flows from other activities.

Understand the purpose and classifications of the cash flow statement.

Describe the roles of regulatory bodies in accounting principles development.

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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in society and the economy through the introduction of new technologies and processes.

Technological Revolution

A period of rapid technological change and innovation that significantly alters industries, economies, and societies.

Scientific Revolution

A period of significant advancements and developments in the fields of science during the 16th and 17th centuries, fundamentally changing the understanding of the natural world.

Postindustrial Revolution

A phase of societal development marked by a shift from manufacturing-based economies to service-oriented, information-based economies.