II. Indicate the most applicable of each of the following assertions. Use only ONE letter for each item.

Assertions about Classes of Transactions and Events:

A. Occurrence D. Classification

B. Completeness E. Cutoff

C. Accuracy

Assertions about Account Balances

F. Existence H. Valuation and Allocation

G. Completeness I. Rights and Obligations

Assertions about Presentation and Disclosure

1. Occurrence and Rights and Obligations
2. Completeness
3. Accuracy and V aluation
4. Classification and Understandability

Items

1. Company management says that the company owns assets

included in the accounting records.

2. All inventory purchases that took place have been recorded.

3.Sales shipped FOB destination, still in transit at

the end of year 1, are excluded from revenue for year 1.

4.Management states that probable losses from all lawsuits and

claims against the company have been recognized in the

financial statements.

5.Management complies with accounting principles in

determining depreciation expense.

6. All sales that have been recorded, took place.

7. The financial statement footnotes include the significant

accounting principles used.

8. No footnotes are included with the financial statements.