Which is not an assertion for the balance sheet?

Which is not an assertion for the balance sheet?

• A. Existence
• B. Completeness
• C. Occurrence
• D. Valuation and allocation

Answer: (C)

The balance sheet is a snapshot of what exists at a date, so the assertions focus on the existence, completeness, and proper measurement of items on the statement. Existence confirms that assets, liabilities, and equity items really exist. Completeness ensures no balances are left out. Valuation and allocation checks that these balances are recorded at proper amounts and correctly allocated where needed. Occurrence, by contrast, relates to whether recorded transactions actually happened, which is a concern of the income statement and the recording of events in the period rather than the balances on the balance sheet itself. Therefore, occurrence is not an assertion used for the balance sheet.

The balance sheet is a snapshot of what exists at a date, so the assertions focus on the existence, completeness, and proper measurement of items on the statement. Existence confirms that assets, liabilities, and equity items really exist. Completeness ensures no balances are left out. Valuation and allocation checks that these balances are recorded at proper amounts and correctly allocated where needed. Occurrence, by contrast, relates to whether recorded transactions actually happened, which is a concern of the income statement and the recording of events in the period rather than the balances on the balance sheet itself. Therefore, occurrence is not an assertion used for the balance sheet.