The cutoff assertion for sales means _______.
A)that transactions have been recorded in the proper accounting period
B)that the auditor should check to make sure sales are being shipped to the correct client customers
C)that transactions are being recorded in the correct accounts
D)that sales should be limited to certain clients who may not have the ability to pay

Question

Quizplus · Accepted Answer

The cutoff assertion for sales refers to the accuracy of recording sales transactions in the proper accounting period. This means that sales should be recorded during the period in which they actually occurred, and not in a different period to manipulate financial statements. The auditor checks the cutoff assertion to ensure that all transactions have been recorded in the correct accounting period. Therefore, option A is the correct choice. Options B, C, and D are not relevant to the cutoff assertion for sales.

The Cutoff Assertion for Sales Means _______