When Silvana Mathews reviewed the physical inventory compilation she performed a procedure that included tracing the cut-off information obtained during the physical inventory observation to the accounting records of sales and purchases. Which assertion did this procedure satisfy?
A) valuation and accuracy
B) completeness
C) existence
D) all of the above

Question

Quizplus · Accepted Answer

The procedure of tracing cut-off information obtained during the physical inventory observation to the accounting records of sales and purchases satisfies the existence assertion. This is because it verifies the existence of inventory by ensuring that it has been properly recorded in the accounting system. It does not directly address valuation and accuracy or completeness.

When Silvana Mathews Reviewed the Physical Inventory Compilation She Performed