Based on the schedule of interbank transfers above, which of the cash transfers indicates an error in cash cutoff at December 31, 2015?
A) 1
B) 2
C) 3
D) 4

Question

Quizplus · Accepted Answer

Transfer 3 indicates an error in cash cutoff because it was recorded in the books on December 31, 2015, but the actual transfer did not occur until January 2016, leading to a mismatch in the accounting period.

Based on the Schedule of Interbank Transfers Above, Which of the Cash