List the major financial statement assertions.

Answer 1

The major financial statement assertions are:

1. Existence or occurrence: The assets, liabilities, revenues, and expenses reported on the financial statements actually exist and have occurred during the reporting period.
2. Completeness: All transactions and events that should have been recorded in the financial statements have been included.
3. Valuation or allocation: Assets, liabilities, revenues, and expenses have been recorded at their appropriate values in accordance with the relevant accounting standards.
4. Rights and obligations: The entity has the legal rights to its assets and liabilities reported on the financial statements.
5. Presentation and disclosure: The financial statements are properly presented and all necessary disclosures have been made in order to provide users with accurate and relevant information.