6-30 (Objective 6-8) The following are various management assertions (a. through m.) related to sales and accounts receivable.

Management Assertion

1. Receivables are appropriately classified as to trade and other receivables in the financial statements and are clearly described.

2. Sales transactions have been recorded in the proper period.

3. Accounts receivable are recorded at the correct amounts.

4. Sales transactions have been recorded in the appropriate accounts.

5. All required disclosures about sales and receivables have been made.

6. All accounts receivable have been recorded.

7. Disclosures related to receivables are at the correct amounts.

8. Sales transactions have been recorded at the correct amounts.

9. Recorded accounts receivable exist.

10. Disclosures related to sales and receivables relate to the entity.

11. Recorded sales transactions have occurred.

12. There are no liens or other restrictions on accounts receivable.

13. All sales transactions have been recorded.

Please answer these questions only.

1. Explain the differences among management assertions about classes of transactions and events, management assertions about account balances, and management assertions about presentation and disclosure.

2. For each assertion, indicate whether it is an assertion about classes of transactions and events, an assertion about account balances, or an assertion about presentation and disclosure.

3. Indicate the name of the assertion made by management.