Milushka Icaza, Who Was Representing Her CPA Firm at a Conference

question 39

Multiple Choice

Milushka Icaza, who was representing her CPA firm at a conference, made the following statement about assertions: When our auditors conduct substantive procedures, we search for evidence that recorded accounts exist and that all accounts that should have been recorded, indeed have been recorded. Which assertions was she talking about?

• A) rights and obligations and recording
• B) valuation and allocation and recording
• C) occurrence and completeness
• D) none of the above

---

Definitions:

Total Cost

The complete cost of producing a specific quantity of output, combining both fixed and variable costs.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, crucial for economic decision-making and pricing strategies.

Diminishing Marginal Product

The principle that as more of a variable input is added to a fixed input, the additional output gained from each new unit of input will eventually decrease.

Marginal Costs

The extra expense associated with manufacturing an additional unit of a product or service.