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Provide one piece of documentation (do not give procedures) that is relevant (to long-term...

Question:

Provide one piece of documentation (do not give procedures) that is relevant (to long-term liabilities) that provides evidence for each of the following assertions.

A. Presentation and disclosure

B. Rights and obligations

C. Existence and occurrence

D. Completion and cutoff

E. Valuation

Long-Term Liabilities:

Long-term liabilities refer to the obligations that take place due to the occurrence of previous events within a particular year, which is shown on the balance sheet. It is also called as non-current liabilities.

Answer and Explanation:

Assertions Relevant Document For Evidence Explanation
a. Presentation and Disclosure Balance Sheet Balance sheet presents the loan teem loans
b. Rights and Obligations Ownership Document: Loan Agreement Loan agreement explains the rights and obligations for long term liability
c. Existence and Occurrence Loan Agreement Loan agreement prooves the liability actually exists
d. Completion and Cutoff Bank statement showing loan payment Cutoff can be proved with the help of payment history of interest and principal
e. Valuation Bank statement showing loan payment Liability can be valued by seeking a bank statement that reflects the balance of the loan


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Accounting for Long-Term Liabilities

from Accounting 101: Financial Accounting

Chapter 10 / Lesson 6
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