You are reviewing sales to discover cutoff problems.If the client's policy is to record sales when title to the merchandise passes to the buyer, then the books and records would contain errors if the December 31 entries were for sales recorded:
A) before the merchandise was shipped.
B) at a time other than the point at which title passed.
C) at the time the merchandise was shipped.
D) several days subsequent to shipments.

Question

Quizplus · Accepted Answer

If sales are recorded at a time other than when the title passes, it would not align with the client's policy, leading to cutoff errors.

You Are Reviewing Sales to Discover Cutoff Problems