Which Management Assertion Is of Most Importance to Auditors in Examining

question 8

Multiple Choice

Which management assertion is of most importance to auditors in examining long-term debt?

• A)Existence.
• B)Completeness.
• C)Rights and obligations.
• D)Presentation and disclosure.

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Definitions:

Consumer

Consumer is an individual or group that purchases goods or services for personal use, not for manufacture or resale, driving the demand side of the marketplace.

Substitute Goods

Products or services that can be used in place of one another, fulfilling the same needs or wants of the consumer.

Normal Goods

Goods for which demand increases as the income of the consumer increases, exhibiting a direct relationship between income and demand.

Complementary Goods

Goods that are typically consumed together, such that the demand for one increases when the price of the other decreases.