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Flashcards in Assertions for Inventory Deck (14)
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1

Assertions about Classes of Transactions and Events - Occurrence

Inventory transactions and events are valid.

2

Assertions about Classes of Transactions and Events - Completeness

All inventory transactions and events have been properly recorded

3

Assertions about Classes of Transactions and Events - Authorization

All inventory transactions and events are properly authorized

4

Assertions about Classes of Transactions and Events - Accuracy

Inventory transactions have been properly computed and recorded

5

Assertions about Classes of Transactions and Events - Cutoff

Inventory receipts and shipments are recorded in the correct accounting period

6

Assertions about Classes of Transactions and Events - Classification

Inventory is recorded in the proper accounts (e.g., raw materials, work in process, or finished goods)

7

Assertions about Account Balances at the Period End - Existence

Inventory recorded on the books and records actually exists

8

Assertions about Account Balances at the Period End - Rights and obligations

The entity has the legal right (i.e., ownership) to the recorded inventory

9

Assertions about Account Balances at the Period End - Completeness

All inventory is recorded

10

Assertions about Account Balances at the Period End - Valuation and allocation

Inventory is properly recorded in accordance with GAAP (e.g., lower of cost or market)

11

Assertions about Presentation and Disclosure - Occurrence and rights and obligations

All disclosed events, transactions, and other matters relating to inventory have occurred and pertain to the entity

12

Assertions about Presentation and Disclosure - Completeness

All disclosures relating to inventory that should have been included in the financial statements have been included

13

Assertions about Presentation and Disclosure - Classification and understandability

Financial information relating to inventory is appropriately presented and described, and disclosures are clearly expressed

14

Assertions about Presentation and Disclosure - Accuracy and valuation

Financial and other information relating to inventory are disclosed fairly and in appropriate amounts