Purchase cutoff procedures should be designed to test whether or not all inventory
A) Purchased and received before the year-end was recorded before year-end.
B) On the year-end balance sheet was carried at lower of cost or market.
C) On the year-end balance sheet was paid for by the company.
D) Owned by the company is in the possession of the company.

Question

Quizplus · Accepted Answer

Purchase cutoff procedures are designed to ensure that all inventory, which is purchased and received before year-end, is recorded before year-end. This helps in ensuring the completeness and accuracy of the financial statements. The other options (B, C, and D) may also be important, but they are not specifically related to purchase cutoff procedures.

Purchase Cutoff Procedures Should Be Designed to Test Whether or Not