Consider the following procedures for the verification of accounts payable:
-Goods in transit shipped FOB-shipping point were not recorded as purchases in the current period.
_____
A)Verify the accuracy of schedules and agreement with accounts payable balances.
B)Apply analytical procedures.
C)Vouch recorded payables.
D)Confirm accounts payablE.
E)Perform purchases cutoff test.
F)Perform cash disbursements cutoff test.
G)Examine subsequent payments.
H)Search for unrecorded accounts payablE.
I)Compare statement presentation with GAAP.

Question

Quizplus · Accepted Answer

Performing a purchases cutoff test helps ensure that transactions are recorded in the correct accounting period, which is crucial for identifying goods in transit that should be recorded as purchases.

Consider the Following Procedures for the Verification of Accounts Payable