The cut-off tests for sales are designed to ensure that both sales and receivables are
recorded in the correct accounting period and that inventories and accounts payable are
recorded in the same accounting period.

Question

Quizplus · Accepted Answer

Cut-off tests for sales are designed to ensure that sales and receivables are recorded in the correct accounting period, but they do not directly concern the recording of inventories and accounts payable in the same accounting period. Those are related to different cut-off tests.

The Cut-Off Tests for Sales Are Designed to Ensure That