The specific financing cycle audit objective, all recorded long-term debt balances are obligations of the reporting entity, relates to the: A) rights and obligations assertion. B) completeness assertion. C) existence or occurrence assertion. D) valuation or allocation assertion. E) presentation or disclosure assertion.

Question

Quizplus · Accepted Answer

This objective relates to the rights and obligations assertion because it concerns whether the entity has the legal claim to or responsibility for the long-term debt balances recorded, indicating that these are indeed obligations of the entity.

The Specific Financing Cycle Audit Objective, All Recorded Long-Term Debt