Question

The following are various management assertions related to sales and account receivable. Required: i) For each assertion, indicate whether it is an assertion about classes of transactions and events or an assertion about account balances. ii) Indicate the name of the assertion made by management. MANAGEMENT ASSERTION CATEGORY OF MANAGEMENT ASSERTION NAME OF ASSERTION a. Recorded accounts receivable exist. b. Disclosures related to sales are relevant and understandable. c. Recorded sales transactions have occurred. d. There are no liens or other restrictions on accounts receivable. e. All sales transactions have been recorded. f. Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described. g. Sales transactions have been recorded in the proper period. Cut off h. Accounts receivable are recorded at the correct amounts. i. Sales transactions have been recorded in the appropriate accounts. j. All required disclosures about accounts receivables have been made. k. All accounts receivable have been recorded. l. Disclosures related to receivables are at the correct amounts. m. Sales transactions have been recorded at the correct amounts.

Answer 1

Answer:

The following are the solution to this question:

Explanation:

1) In the assertion groups or the title of the claim taken by the organization for each assertion  

a. Sales and accounts receivable divulgations relate to the company.  

Category of assertion: Introduction and publishing  

List of the statement: Occurrence

b. There's been registered sales transactions.  

Name of Assertion Class: Transactions and Events  

Name of the statement: Occurrence  

c. No accounts receivable bonds or other limitations exist.  

Class assertion: the value of accounts s  

Name of claim: rights and duties  

d. All payments were registered.  

Assertion class: Payment class and events    

Title of the statement: Occurrence  

e. Throughout the financial statements, accounts receivable are listed accordingly or specifically defined with relation to trade as well as other claims.  

Activism class: submission and divulgation  

Name of claim: plans for the future  

f. Throughout the correct time, sales transactions are reported.  

Assertion Class: Transactions and Occurrences    

Name of the claim: Cutoff

g. The receivable accounts were reported throughout the right number.  

Class assertion: Balances of account  

Name of the statement: evaluation  

h. In corresponding accounts, cash sales were registered.  

Class of assertion: transaction and events  

Name of claim: category.

i. All required sales and accounts receivable disclosures are made.  

Class of assertion: presentation and exposing the name of claim name: completeness.

j. Both receivable records were registered.  

Class assertion: Balance of account  

Name of the statement: Life.  

k. Assertions relating to damages shall be in the correct amounts.  

Class of assertion: presentation and exposing  

Name of claim: Precision.  

l. Exchanges in the right amounts were registered.  

Class of assertion: activity and occurrences  

Name of claim: Accuracy  

2) Differences between the leadership assertions groups  

Presidency of transaction classes or events:  

This would be to claim that its transfers were accurately recorded and during the proper fiscal quarter in terms of income and incident.  

Checking account management assertions:  

It is because the accounting report of any payments has also been properly accurately reported without any error and during the correct fiscal quarter.  

Presentation and time in question management assertions:  

Its point would be that the information contained in the financial statements is contained or disclosed appropriately.