Purchase cut-off procedures should be designed to test whether all inventory:
A)on the statement of financial position was carried at lower of cost or market.
B)purchased and received before the year-end was recorded at year-end.
C)owned by the company is in the possession of the company.
D)on the year-end statement of financial position was paid for by the company.

Question

Quizplus · Accepted Answer

Purchase cut-off procedures are designed to ensure that all inventory that was purchased and received before the year-end was correctly recorded in the financial statements for that year. This helps to prevent inventory-related misstatements from occurring. Options A, C, and D are not relevant to the purpose of purchase cut-off procedures.

Purchase Cut-Off Procedures Should Be Designed to Test Whether All