A simple way of testing which period a sale should be recorded in is to:
A) trace the sale through to the accounting records.
B) observe the account receivable clerk record the sale.
C) vouch the sale to the delivery documentation for the sale of goods.
D) None of the above

Question

Quizplus · Accepted Answer

Vouching the sale to the delivery documentation for the sale of goods is the best choice as it ensures that the sale was actually made and provides evidence of when the sale was made, allowing for proper recording of the sale in the correct period. Tracing the sale through to the accounting records may not provide enough detail to determine when the sale occurred, and observing the accounts receivable clerk record the sale does not guarantee that the sale is being recorded in the correct period.

A Simple Way of Testing Which Period a Sale Should