An unusual feature of cut-off tests is that they:
A) are always performed at year-end to verify a recorded balance even though they are tests of transactions.
B) are never performed at year-end to verify a recorded balance because they are tests of transactions.
C) are always performed at year-end to verify transactions even though they are tests of details of balances.
D) none of the above.

Question

Quizplus · Accepted Answer

Cut-off tests are typically performed at year-end to verify that transactions are recorded in the correct accounting period, even though they are tests of transactions rather than balances.

An Unusual Feature of Cut-Off Tests Is That They