I am right to believe that the rights and obligation assertion applies only to the balance sheet items only? Because my homework assignment asks,"

The rights and obligations assertion applies to:
a. current liability items only.
b. revenue and expense items only.
c. both income statement and balance sheet items.
d. assets that are not owned by the company.
e. balance sheet items only.

To determine the correct answer to the question, let's break down the assertion and its meaning.

The rights and obligations assertion pertains to the concept that the company has rights to its assets and is obligated to its liabilities. This assertion ensures that the reported balance sheet items accurately represent the company's ownership of assets and its obligations to pay liabilities.

Now, let's analyze the options provided:

a. Current liability items only: This option suggests that the rights and obligations assertion applies solely to current liabilities. However, the assertion encompasses both assets and liabilities, not just liabilities. Therefore, this option is incorrect.

b. Revenue and expense items only: The rights and obligations assertion primarily focuses on assets and liabilities, not on revenue and expense items. As a result, this option is incorrect.

c. Both income statement and balance sheet items: This option accurately reflects the rights and obligations assertion. While the assertion primarily applies to balance sheet items (assets and liabilities), it also impacts the accuracy of income statement items. Thus, this option is correct.

d. Assets that are not owned by the company: This option indicates assets that do not belong to the company. However, the rights and obligations assertion examines the company's ownership of its assets, so this option is incorrect.

e. Balance sheet items only: While the rights and obligations assertion is most closely associated with balance sheet items, it does extend beyond the balance sheet to include income statement items. Therefore, this option is incorrect.

In conclusion, the correct answer is option c: both income statement and balance sheet items. The rights and obligations assertion applies to both the balance sheet and income statement items to ensure the accurate representation of a company's ownership of assets and its obligations.

The rights and obligations assertion applies to both income statement and balance sheet items. So, the correct answer would be option c.