Rapelje Sporting Goods sold a trampoline for $475 cash on January 3, 2014. The trampoline had cost

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Question:

Rapelje Sporting Goods sold a trampoline for $475 cash on January 3, 2014. The trampoline had cost Rapelje $300. If Rapelje failed to record the transaction, which transaction-level assertion would be violated?

Completeness

Accuracy

Occurrence

Classification

Cutoff

Rapelje Sporting Goods sold a trampoline for $475 cash on January 3, 2014. The trampoline had cost Rapelje $300. If Rapelje records the transaction in the correct accounts but at the wrong dollar amounts, which transaction-level assertion would be violated?

Classification

Cutoff

Accuracy

Completeness

Occurrence

Rapelje Sporting Goods alleges to have $410,000, net of allowance for doubtful accounts, in its accounts receivable account; this balance is made up of 270 total customers. If Rapelje’s true balance is $420,000 and the understated balance is due to the exclusion of a customer’s balance, which balance-level assertion would be violated?

Valuation and Allocation

Existence

Rights or Obligations

Completeness

Rapelje Sporting Goods alleges to have $410,000, net of allowance for doubtful accounts, in its accounts receivable account; this balance is made up of 270 total customers. If Rapelje’s balance should be $400,000 and the overstated balance is due to an understatement of the allowance for doubtful accounts estimate which balance-level assertion would be violated?

Existence

Completeness

Valuation and Allocation

Rights or obligations

Rapelje Sporting Goods has been sued by one of its customers for allegedly selling a defective trampoline that caused injury. The best available independent estimates indicate there is a probable loss of $520,000. Assume that the appropriate treatment is to disclose the event in a footnote. If this event did in fact occur but the company chose not to disclose the event, which presentation and disclosure-level assertion would be violated?

Completeness

Accuracy and valuation

Occurrence and rights and obligations

Classification and understandability

Rapelje Sporting Goods has been sued by one of its customers for allegedly selling a defective trampoline that caused injury. The best available independent estimates indicate there is a probable loss of $520,000. Assume that the appropriate treatment is to disclose the event in a footnote. If the company intentionally ignores the best estimate and discloses the potential loss of this event at $220,000, which presentation and disclosure-level assertion would be violated?

Occurrence and rights and obligations

Accuracy and valuation

Classification and understandability

Completeness