Day: September 11, 2026

Which ONE of the following procedures would provide evidence of the rights and obligations of motor vehicles?

Select ONE answer:

1. Physical inspection of motor vehicles
2. Vouching a sample of motor vehicles in the asset register to sales brochures
3. Review of purchase invoices for motor vehicles acquired in the period
4. Confirmation that calculations on the non-current asset schedule are correct in respect of motor vehicles

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – Physical inspection and confirmation of calculations provide evidence of existence and valuation, respectively, as opposed to rights and obligations. The rights and obligations assertion means that the entity holds or controls the rights to assets. Although registration documents show the registered keeper, not the owner, the keeper is likely to have control of the asset. Purchase invoices give evidence of ownership (which gives control).
4. Not correct

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