For the inventory process,management asserts that inventory exists at the income statement date and that the costs of goods sold transactions recorded in the inventory process occurred during the year.

Question

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Management asserts that inventory exists at the balance sheet date, not the income statement date. The assertion related to the costs of goods sold transactions occurring during the year is about the occurrence and completeness of transactions, not directly about the inventory process assertion of existence at the income statement date.

For the Inventory Process,management Asserts That Inventory Exists at the Income