Select significant items from the raw materials inventory list and agree costs to suppliers' invoice,shipping charges,and customs broker's charges,is substantive test for which assertions?
A)Valuation and presentation
B)Existence and presentation
C)Completeness and ownership
D)Valuation and ownership

Question

Quizplus · Accepted Answer

The test of selecting significant items from the raw materials inventory list and agreeing costs to suppliers' invoice, shipping charges, and customs broker's charges is primarily focused on the valuation and ownership assertions. Valuation assertion refers to the accuracy of the recorded value of inventory, while ownership assertion refers to the company's legal ownership of the inventory. This test helps to ensure that the inventory is recorded at the correct cost and that the company has legal ownership of the inventory. Therefore, the correct answer is D, Valuation and Ownership.

Select Significant Items from the Raw Materials Inventory List and Agree