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:

Specialized Language

Technical or industry-specific language used among professionals in a particular field, enhancing precision but possibly hindering communication with outsiders.

Mum Effect

is the tendency to avoid communicating unfavorable news or feedback due to fear of the recipient's reaction or to avoid conflict.

Grapevine

An informal communication network among people in an organization, not sanctioned by formal channels.

Information Filtering

The process of sifting through and reducing the volume of information available to focus on the most relevant or important details.