Management Assertions in the Acquisition and Expenditure Business Process Are

question 47

Multiple Choice

Management assertions in the acquisition and expenditure business process are

• A)existence or occurrence - for both classes of transactions and 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 account balances
• F)both A and C
• G)both B and D

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Definitions:

Arithmetic Return

The simple average of periodic returns of an investment over a specified time frame.

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and magnitude of cash flows into and out of the investment.

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of capital inflows and outflows.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.