Which of the Following Statements About Assertions Is True

question 92

Multiple Choice

Which of the following statements about assertions is true?

• A)All assertions are equally important for all accounts.
• B)The importance of an assertion depends upon the account.
• C)Assertions are not related to accounts.
• D)None of the above.

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Definitions:

Financial Soundness

An indication that an entity is stable, solvent, and has the capability to meet its financial obligations.

EDGAR

Stands for Electronic Data Gathering, Analysis, and Retrieval system, a database maintained by the U.S. Securities and Exchange Commission for corporate filings.

Automated Collection

The use of computerized systems to gather debts or receivables efficiently, often used by financial institutions and collection agencies.

Short-swing Profits Rule

A regulation intended to prevent insider trading by requiring company insiders to return any profits made from the purchase and sale of company stock within a six-month period.