Tests designed to detect purchases made just before the end of the year that have been recorded in the subsequent year would provide assurance about management's assertion of:
A) accuracy.
B) occurrence.
C) cut-off.
D) classification.

Question

Quizplus · Accepted Answer

Since the test is designed to detect purchases that were recorded in the subsequent year, it ensures that purchases made before the end of the year were recorded in the correct accounting period, which is related to the cut-off assertion. The test does not specifically address accuracy, occurrence, or classification assertions.

Tests Designed to Detect Purchases Made Just Before the End