Problem: Financial Statement Assertions: Inventory
For each, indicate the assertion:
1. Inventories are properly at the lower of cost or market.
2. Inventories in the warehouse on the balance sheet date are all reported.
3. Inventory includes all items on hand.
4. Liens are disclosed in footnotes.
5. The client has legal title to inventory.
6. The financial statements reveal raw materials, work in progress, and finished goods.
7. Inventories include items in transit at the balance sheet date and on consignment.
8. Inventories on consignment from suppliers are excluded.
9. Quantities times price have been corrected computed, totaled, and the total agrees with the general ledger.
10. Slow-moving items are identified and properly priced.
11. Inventories are properly classified in the balance sheet.