In determining that the accounts payable cutoff is correct, it is essential that the cutoff tests be coordinated with the
A) confirmation of payables.
B) tests of long-term liabilities.
C) observation of inventory.
D) cash count.

Question

Quizplus · Accepted Answer

The observation of inventory is crucial for ensuring that the accounts payable cutoff is correct, as it helps verify that purchases and related liabilities are recorded in the correct accounting period.

In Determining That the Accounts Payable Cutoff Is Correct, It