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 O. Classification B. Completeness E. CutofE C. Accuracy Assertions about Account Balances F. Existence H. Valuation and Allocation G. Chmpleteness 1. Rights and.Obligatiohs Assertions about Presentation and.Oisclosure J. occurrence and Rights and Obligations K. completeness L. Accuracy and valuation M. classiication and Onderstandability Items 1. Company management says that the company owns assets included in the accounting records. a. All inventory purchases that took place have been recorded. 3. Sales shipped FOO destination. still in transit at the end of year 1. are excluded from revenue for year 1. 4. Management states that probable losses trom all lawsuits an claims against the company haVe been recognised in the financial statements. 5. Management complies with accounting principles in determining depreciation expense. 6. All sales that have been recorded. took place. 1. The financial statement footnotes include the significant accounting principles used. a. No footnotes are included with the linancial statements. Answers (USE ONLY ONE LETTER} 1. 3. 5. T. _I- 2.- 4l al- at