The cutoff assertion for accounts payable includes
A) Determining whether all accounts payable are recorded.
B) Determining whether all accounts payable actually are liabilities.
C) Determining whether all accounts payable are recorded in the proper period.
D) Determining whether all accounts payable are properly classified in the financial statements.

Question

Quizplus · Accepted Answer

The cutoff assertion for accounts payable is concerned with whether all transactions related to accounts payable have been recorded in the proper period. It ensures that expenses are accurately recorded in the right accounting period, which is critical for the preparation of accurate financial statements. The other options are important but not directly related to this assertion. A is covered under the completeness assertion, B under the existence assertion, and D under the classification and presentation assertion.

The Cutoff Assertion for Accounts Payable Includes