Purchase cut off procedures should be designed to produce evidence about whether or not merchandise that is included in the inventory of the company
A)Has been paid for.
B)Is physically present in the warehouse.
C)Is owned by the company (legal title has been transferred).
D)Relates to the shipping documents for the merchandise issued in the company's name.

Question

Quizplus · Accepted Answer

Purchase cut off procedures are designed to ensure that the inventory recorded is actually owned by the company, meaning legal title has been transferred, which is crucial for accurate financial reporting.

Purchase Cut Off Procedures Should Be Designed to Produce Evidence