A simple way of testing which period a sale should be recorded in is to:
A) trace the sale through to the accounting records.
B) observe the account receivable clerk record the sale.
C) vouch the sale to the delivery documentation for the sale of goods.
D) none of the above.

Question

Quizplus · Accepted Answer

Vouching the sale to the delivery documentation for the sale of goods confirms that the sale was made in the given period and that the revenue should be recognized in that period. Option A and Option B are not as reliable and do not provide sufficient evidence to confirm the appropriate period for recognizing the revenue. Option D is not a valid choice as it does not provide any insight into how to determine the period for recording a sale.

A Simple Way of Testing Which Period a Sale Should