The Audit Objective That Costs and Expenses Are Stated in the Income

question 19

Multiple Choice

The audit objective that costs and expenses are stated in the income statement at the appropriate amounts relates to which assertion?

• A) completeness
• B) occurrence
• C) classification
• D) accuracy

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Definitions:

Exports

Commodities or services developed in one country and exported to buyers in another country.

CAFTA

The Central American Free Trade Agreement, a trade agreement between the United States and Central American countries to reduce trade barriers.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries from foreign competition.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations.