Microsoft Exam MB-500 Reference | MB-500 Valid Braindumps Sheet & MB-500 Free Practice Exams - Publiware

  • Exam Code: MB-500
  • Exam Name: Microsoft Dynamics 365: Finance and Operations Apps Developer
  • Version: V12.35
  • Q & A: 78 Questions and Answers

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NEW QUESTION: 1
An auditor's purpose in reviewing credit ratings of customers with delinquent accounts receivable most
likely is to obtain evidence concerning management's assertions about:
A. Valuation and allocation.
B. Understandability and classification.
C. Rights and obligations.
D. Existence.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. Assertions about valuation and allocation deal with whether asset, liability, revenue,
and expense components have been included in the financial statements at appropriate amounts, and any
resulting valuation adjustments are appropriately recorded. For example, management asserts that trade
accounts receivable included in the balance sheet are stated at net realizable value.
Choice "B" is incorrect. Assertions about understandability and classification deal with whether financial
information is appropriately presented and described, and disclosures are clearly expressed. Reviewing
credit ratings of delinquent customers does not provide evidence about this type of assertion.
Choice "C" is incorrect. Assertions about existence deal with whether assets, liabilities, and equity interest
of the entity exist at a given date. Reviewing credit ratings of delinquent customers does not provide
evidence about this type of assertion.
Choice "D" is incorrect. Assertions about rights and obligations deal with whether assets are the rights of
the entity and liabilities are the obligations of the entity at a given date. Reviewing credit ratings of
delinquent customers does not provide evidence about this type of assertion.

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