The Rights and Obligations Assertion Relates to Which of the Following

question 2

Multiple Choice

The rights and obligations assertion relates to which of the following audit objectives?

• A)All inventory on the inventory listing is included in the financial report
• B)Inventory is properly classified,described and disclosed in the financial report
• C)The entity owns,or has the legal right to,all of the inventory on the balance sheet
• D)All inventory owned by the entity at year-end is included on the balance sheet

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Definitions:

Sellers

Individuals or entities that offer goods or services in exchange for payment.

Price Ceiling

A legally imposed limit on how high a price can be charged for a product, service, or resource.

Quantity Demanded

The total amount of a goods or services consumers are willing and able to purchase at a specific price point.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period of time.