For the following statements identify the assertion related to the risk of material misstatement. Explain your choice. Statement 1: "I am concerned that several of the significant accounts receivable balances on the Balance Sheet are uncollectible" Statement 2: "I am concerned that several of the revenue transactions that were recorded during the year didn't actually happen" Statement 3: "I am concerned that there is a significant unrecorded liability that should be recorded on the Balance Sheet" Statement 4: "I am concerned that assets that don't actually exist were recored on the Balance Sheet!" ... BIU Format

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Time: 8 minutes
For the following statements identify the assertion related to the risk of material
misstatement. Explain your choice.
Statement 1: "I am concerned that several of the significant accounts receivable
balances on the Balance Sheet are uncollectible"
Statement 2: "I am concerned that several of the revenue transactions that were
recorded during the year didn't actually happen"
Statement 3: "I am concerned that there is a significant unrecorded liability that
should be recorded on the Balance Sheet"
Statement 4: "I am concerned that assets that don't actually exist were recored on
the Balance Sheet!"
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Transcribed Image Text:Listen Time: 8 minutes For the following statements identify the assertion related to the risk of material misstatement. Explain your choice. Statement 1: "I am concerned that several of the significant accounts receivable balances on the Balance Sheet are uncollectible" Statement 2: "I am concerned that several of the revenue transactions that were recorded during the year didn't actually happen" Statement 3: "I am concerned that there is a significant unrecorded liability that should be recorded on the Balance Sheet" Statement 4: "I am concerned that assets that don't actually exist were recored on the Balance Sheet!" BIU Format tv
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