Celebra sold some goods to Frankfurt Corp. Frankfurt sent a cheque to Celebra to pay for the goods on December 24th. Celebra received the check on January 4th. At December 31st, Celebra still showed an account receivable from Frankfurt while Frankfurt no longer had an account payable to Celebra. This situation represents a
A) cutoff error.
B) timing difference.
C) error in presentation.
D) lack of communication between the two companies.
Correct Answer:
Verified
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