The cut-off assertion for accounts payable includes:
A) determining whether all accounts payable are recorded at their correct amount.
B) determining whether all accounts payable are actually liabilities.
C) determining whether all accounts payable are recorded in the proper period.
D) determining whether all accounts payable are properly classified in the financial statements.

Question

Quizplus · Accepted Answer

The cut-off assertion for accounts payable involves determining whether all accounts payable are recorded in the proper period. This means that all invoices and expenses related to the current period are included in the accounts payable balance while any expenses related to the subsequent period are not included. Therefore, option C is the most appropriate choice. Options A, B, and D are also important considerations when performing an audit of accounts payable, but they do not fall under the cut-off assertion for accounts payable.

The Cut-Off Assertion for Accounts Payable Includes