Which of the following is not a PCAOB assertion about inventory related to presentation and disclosure?
A)Inventory is properly classified as a current asset on the balance sheet.
B)Inventory is properly stated at its cost on the balance sheet.
C)Major inventory categories and their valuation bases are adequately disclosed in notes.
D)All of these are PCAOB presentation and disclosure assertions about inventory.

Question

Quizplus · Accepted Answer

Inventory being properly stated at its cost on the balance sheet is related to valuation and allocation assertion, not directly to presentation and disclosure. Presentation and disclosure assertions focus on how information is presented in financial statements and accompanying notes, including proper classification and adequate disclosure of accounting policies and amounts.

Which of the Following Is Not a PCAOB Assertion About