In testing for cutoff,the objective is to determine
A)whether all of the current period's transactions are recorded.
B)that no transactions from the prior period are included in the current period's balances.
C)that no transactions of the current period have been delayed and recorded in a future period.
D)whether transactions are recorded in the proper period.

Question

Quizplus · Accepted Answer

The objective of testing for cutoff is to ensure that the transactions have been recorded in the proper period. This means that transactions occurring in the current period are recorded in the current period and not in a future period or the prior period. Therefore, the best choice is D - whether transactions are recorded in the proper period.

In Testing for Cutoff,the Objective Is to Determine