Management Assertions About the Accounts in the Inventory Business Process

question 40

Multiple Choice

Management assertions about the accounts in the inventory business process are

• A)existence or occurrence - for account balances
• B)completeness - for classes of transactions
• C)valuation and allocation - for both classes of transactions and account balances
• D)rights and obligations - for both classes of transactions and account balances
• E)accuracy - for classes of transactions

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Definitions:

Revenue

The total income generated from normal business operations and other activities over a specific period of time.

Items Sold

The total quantity of products or services sold by a business within a specific period.

Razor-And-Razor-Blade

A business model that sells a primary product at a low price (or gives it away) to drive the sales of related consumable products.

Disposable Unit

An item or component meant for a single use or limited time period before being discarded or replaced.