Management makes assertions about components of the financial statements. Match the descriptions with the assertion that it belongs to.
a. Valuation or allocation
b. Completeness
c. Rights and obligations
d. Existence or occurrence
1. The accounts and transactions that should be included are included; thus, the financial statements are complete.
2. Assets, liabilities, equity revenues, and expenses are appropriately valued and are allocated to the proper accounting period.
3. The assets are the rights of the entity, and the liabilities are its obligations.
4. The assets and liabilities exist, and the recorded transactions have occurred.