Day: September 24, 2026

Direct confirmation of trade receivables provides evidence in respect of which ONE of the following assertions?

Select ONE answer:

1. Completeness
2. Occurrence
3. Existence
4. Accuracy, valuation and allocation

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 – Accuracy, valuation and allocation is not supported as we have no evidence that these receivables intend to pay. Completeness is not supported as it is the list of receivables provided by the client that is subject to direct confirmation (i.e., the test is for existence and ownership (= rights and obligations) from that list). Occurrence is a financial statement assertion that affects classes of transactions and not account balances.
4. Not correct

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