Question

The following are various management assertions (a. through m.) related to sales and accounts receivable. Management Assertion Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described. Sales transactions have been recorded in the proper period. Accounts receivable are recorded at the correct amounts. Sales transactions have been recorded in the appropriate accounts. All required disclosures about sales and receivables have been made. All accounts receivable have been recorded. Disclosures related to receivables are at the correct amounts. Sales transactions have been recorded at the correct amounts. Recorded accounts receivable exist. Disclosures related to sales and receivables relate to the entity. Recorded sales transactions have occurred. There are no liens or other restrictions on accounts receivable. All sales transactions have been recorded. Required Explain the differences among management assertions about classes of transactions and events, management assertions about account balances, and management assertions about presentation and disclosure. For each assertion, indicate whether it is an assertion about classes of transactions and events, an assertion about account balances, or an assertion about presentation and disclosure. Indicate the name of the assertion made by management

Answer 1

Answer :-

• The executives declaration about classes of exchanges manages exchanges and different occasions that are reflected in the records.
• Declarations about record offset manages the record balance at the period end that are accounted for in the organization's budget summaries.
• Declaration about introduction and divulgence manages how those parities are displayed, and uncovered in the organization's fiscal reports.

MANAGEMENT ASSERTION	CATEGORY OF MANAGEMENT ASSERTION	NAME OF ASSERTION
Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described	Presentation and exposure	Characterization and understandability
Sales transactions have been recorded in the proper period.	Classes of exchanges	Cutoff
Accounts receivable are recorded at the correct amounts.	Account adjusts	Valuation and distribution
Sales transactions have been recorded in the appropriate accounts.	Classes of exchanges	Classification
All required disclosures about sales and receivables have been made.	Presentation and exposure	Completeness
All accounts receivable have been recorded.	Account adjusts	Completeness
Disclosures related to receivables are at the correct amounts.	Presentation and exposure	Exactness and valuation
Sales transactions have been recorded at the correct amounts.	Classes of exchanges	Exactness
Recorded accounts receivable exist.	Account adjusts	Presence
Disclosures related to sales and receivables relate to the entity.	Presentation and exposure	Occurrence and rights and commitments
Recorded sales transactions have occurred.	Classes of exchanges	Occurrence
There are no liens or other restrictions on accounts receivable.	Account adjusts	Rights and commitments
All sales transactions have been recorded.	Classes of exchanges	Completeness