When equipment items are purchased for cash
A) the inherent risk in the accuracy, valuation and allocation assertions are not affected.
B) the inherent risk in the existence and occurrence and allocation assertions is high.
C) the inherent risk in the accuracy, valuation and allocation assertions objectivity is low.
D) the inherent risk in the accuracy, valuation and allocation assertions is zero.

Question

Quizplus · Accepted Answer

When equipment items are purchased for cash, the inherent risk related to the accuracy, valuation, and allocation assertions is generally low because the transaction is straightforward and involves a clear exchange of cash for equipment, reducing complexity and potential for error.

When Equipment Items Are Purchased for Cash