The Occurrence Assertion for Sales Relates to Which of the Following

question 3

Multiple Choice

The occurrence assertion for sales relates to which of the following audit objectives?

• A) Sales and other revenues are properly classified, described and disclosed in the financial statements.
• B) Sales and other revenues are stated in the profit and loss at the appropriate amounts.
• C) All sales and other revenues that accrued to the entity during the period are included in the income statement.
• D) All sales included in the income statement represent the exchange of goods or services with customers during the period.

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Definitions:

Next Year

A reference to the year immediately following the current year.

Large Company Stocks

Shares issued by corporations with large market capitalizations, typically seen as stable investments.

TSX/S&P Composite Index

A stock market index of the stock performances of the largest companies listed on the Toronto Stock Exchange (TSX), representing a significant portion of the Canadian equity market.

Securities

Equities and debts that reflect a stake in publicly available corporate entities, or an indebtedness to a public or private organization, alongside options that confer rights to ownership.