Listed below are five assertion categories coded by the letters A through E.
-Stockholders' equity balances represent owners' claims on the reporting entity's assets.
A)Completeness
B)Existence or Occurrence
C)Rights and Obligations
D)Valuation or Allocation
E)Presentation and Disclosure

Question

Quizplus · Accepted Answer

Rights and Obligations assertion is concerned with whether the entity has the rights to the assets and whether the liabilities are the obligations of the entity. Stockholders' equity balances representing owners' claims on the entity's assets directly relate to the entity's obligations to its owners, making Rights and Obligations the correct assertion category.

Listed Below Are Five Assertion Categories Coded by the Letters