Which of the following procedures would ordinarily be expected to best reveal improper cutoff of sales at the balance sheet date?
A)Compare shipping documents with sales records.
B)Apply gross profit rates to inventory disposed of during the period.
C)Trace payments received subsequent to the balance sheet date.
D)Send accounts receivable confirmation requests.

Question

Quizplus · Accepted Answer

Comparing shipping documents with sales records is the best method to reveal improper cutoff of sales at the balance sheet date. This procedure helps ensure that sales are recorded in the correct accounting period by matching the physical movement of goods with the recorded sales transactions.

Which of the Following Procedures Would Ordinarily Be Expected to Best