Management Asserts That

question 15

Multiple Choice

Management asserts that

• A)the company has the right to the assets of cash and investments
• B)all balances related to the investment account have been accurately recorded
• C)all cash and investment transactions that should be presented in the financial statements are relevant
• D)transactions related to the investment process have been properly classified
• E)the investment accounts are reliable according to the rules of the applicable financial reporting framework at year-end
• F)both A and D
• G)both B and C
• H)both D and E

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Definitions:

Probability

A measure of the likelihood of a certain event or outcome, typically expressed as a number between 0 and 1.

Disproportionately Large Weight

An undue or excessively large significance or importance given to a component or factor in a situation or calculation.

Catastrophic Medical Emergency

A sudden, unexpected medical situation requiring immediate and expensive care, potentially causing significant financial hardship.

Underestimate

To assess something or someone as less in quantity, value, or importance than is actually the case.