In determining that the accounts payable cutoff is correct, it is essential that the cutoff tests be coordinated with the:
A) tests on long- term liabilities.
B) physical observation of inventory.
C) cash count.
D) confirmation of payables.

Question

Quizplus · Accepted Answer

The accounts payable cutoff is related to the timing of inventory purchases, so it should be coordinated with the physical observation of inventory to ensure that inventory received is recorded in the correct period.

In Determining That the Accounts Payable Cutoff Is Correct, It