The Statement About Inherent Risk Assessments for Property, Plant, and Equipment

question 19

Multiple Choice

The statement about inherent risk assessments for property, plant, and equipment that is inaccurate is

• A) inherent risk is normally low for the classification and presentation assertions for PPE assets acquired under finance leases.
• B) inherent risk is normally low for the existence assertion in a merchandising entity because PPE assets are not generally vulnerable to theft.
• C) inherent risk is normally moderate to high for the existence assertion in a manufacturing entity because scrapped or retired PPE assets may not be written off the books.
• D) inherent risk is normally low for the accuracy, valuation and allocation assertion when PPE assets are purchased for cash.

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Definitions:

Affordable Child Care

refers to childcare services that are financially accessible to families, contributing to economic stability and allowing parents to work or pursue education.

Earnings

The amount of money that an individual or business receives in exchange for providing a service or through investing capital.

Political Participation

The involvement of citizens in the political process, ranging from voting in elections to engaging in political discussions or activism.

Daycare

A service that provides care and supervision for children while their parents are at work or engaged in other activities.