Which one of the following statements is NOT true?
A) An example of a completeness assertion would be that the notes payable account in the balance sheet includes all such obligations of the entity.
B) An example of a rights/obligations assertion would be that amounts capitalised for leases in the balance sheet represent the cost of the entity's rights to leased property.
C) An example of a valuation/allocation assertion would be that property, plant, and equipment are listed in the noncurrent section of the balance sheet.
D) An example of an existence/occurrence assertion would be that sales in the income statement represent exchanges of goods or services that actually took place.

Question

Quizplus · Accepted Answer

This statement is not true because listing property, plant, and equipment in the noncurrent section of the balance sheet relates to the classification and presentation assertion, not the valuation/allocation assertion. The valuation/allocation assertion would be more concerned with whether the carrying values of the assets are reasonable and accurate.

Which One of the Following Statements Is NOT True