Assertions for Revenue and Cash

Question 1

Assertions about Classes of Transactions and Events - Occurrence

Answer 1

All revenue and cash receipt transactions and events that have been recorded have occurred and pertain to the entity.

Question 2

Assertions about Classes of Transactions and Events - Completeness

Answer 2

All revenue and cash receipt transactions and events that should have been recorded have been recorded.

Question 3

Assertions about Classes of Transactions and Events - Authorization

Answer 3

All revenue and cash receipt transactions and events are properly authorized.

Question 4

Assertions about Classes of Transactions and Events - Accuracy

Answer 4

Amounts and other data relating to recorded revenue and cash receipt transactions and events have been recorded appropriately.

Question 5

Assertions about Classes of Transactions and Events - Cutoff

Answer 5

All revenue and cash receipt transactions and events have been recorded in the correct account period.

Question 6

Assertions about Classes of Transactions and Events - Classification

Answer 6

All revenue and cash receipt transactions and events have been recoded in the proper accounts.

Question 7

Assertions about account balances at the period end - Existence

Answer 7

Recorded accounts receivable and related accounts exist.

Question 8

Assertions about account balances at the period end - Rights and obligations

Answer 8

The entity holds or controls the rights to accounts receivable and related accounts, and any liabilities related to those accounts are the obligations of the entity.

Question 9

Assertions about account balances at the period end - Completeness

Answer 9

All accounts receivable and related accounts that should have been recorded have been recorded.

Question 10

Assertions about account balances at the period end - Valuation and allocation

Answer 10

Accounts receivable and related accounts are included in the financial statements at appropriate amounts, and any resulting valuation or allocation adjustments are appropriately recorded.

Question 11

Assertions about presentation and disclosure - Occurrence and rights and obligations

Answer 11

All disclosed events, transactions, and other matters relating to accounts receivable and related accounts have occurred and pertain to the entity.

Question 12

Assertions about presentation and disclosure - Completeness

Answer 12

All disclosures relating to accounts receivable and related accounts that should have been included in the financial statements have been included.

Question 13

Assertions about presentation and disclosure - Classification and understandability

Answer 13

Financial information relating to accounts receivable and related accounts is appropriately presented and described, and disclosures are clearly expressed.

Question 14

Assertions about presentation and disclosure - Accuracy and valuation

Answer 14

Financial and other information relating to accounts receivable and related accounts are disclosed fairly and in appropriate amounts.