Financial Statement Assertions

To ensure both debit and credit of a transaction is recorded in financial stataement.

• Cutoff

• Accuracy

• Completeness

• Ocurrence

To ensure that transactions recorded in the financial statements have actually happened

• Existence

• Right and obligation

• Classification

• Ocurrence

To ensure the date, details and amount are recorded correctly.

• Accuracy

• Classification

• Understandability

• Existence

To ensure the transaction recorded at correct accounting period.

• Valuation

• Allocation

• Cutoff

• Existence

To ensure office building acquired is physically appear

• Ocurrence

• Existence

• Completeness

• Cutoff

To ensure the organisation has the power to use the asset and responsibility to pay off liabilities

• Completeness

• Classification

• Valuation

• Right and obligation

MFRS 102 Inventories should be valued at the lower of cost and net realisable value

• Accuracy

• Existence

• Valuation and allocation

• Completenes

To ensure the disclosures enable the user of financial statement without accounting background acknowledge the information

• Accuracy

• Right and obligation

• Classification and understandability

• Valuation and allocation

Which financial statement assertion is not contained in classes of transaction?

• Cutoff

• Accuracy

• Completeness

• Existence

Which financial statement assertion is not contained in account balances?

• Completeness

• Accuracy

• Valuation and allocation

• Right and obligation