A Check by the Auditor on the Numeric Sequence of Prenumbered

question 5

Multiple Choice

A check by the auditor on the numeric sequence of prenumbered receiving reports to determine that a supplier's invoice was recorded for each relatto the:

• A) existence or occurrence assertion.
• B) completeness assertion.
• C) presentation or disclosure assertion.
• D) rights and obligations assertion.

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Definitions:

Debit

An entry recorded on the left side of a ledger account that increases an asset or expense account, or decreases a liability, equity, or revenue account.

Credit

A financial arrangement where goods, services, or money is received in exchange for a promise to pay back later, often with interest.

"Dr"

An abbreviation for "debit record," indicating an entry on the left side of an account, representing an increase in assets or expenses.

Stockholders' Equity

Shareholders' equity in a corporation, which is the value of the assets that remains once all debts and obligations are deducted.