Management Assertions About the Accounts in the Inventory Business Process

question 76

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 account balances
• D)rights and obligations - for classes of transactions
• E)accuracy - for both classes of transactions and account balances

---

Definitions:

Formal Operational

A stage in Jean Piaget's theory of cognitive development where individuals (typically 12 years and older) gain the ability to think abstractly, reason logically, and use deductive reasoning.

Abstract Principles

Fundamental ideas or theories that are theoretical in nature and not based on specific instances.

Hypothetical Possibilities

Imagined scenarios or conditions that can be considered when reasoning or planning without necessarily having a basis in reality.

Hierarchical Classification

A system of organizing entities into a graded series of levels based on characteristics or criteria, often used in biology for the classification of organisms.