The proper cutoff of inventories is best achieved when receiving reports and purchase invoices surrounding the year-end are examined.

Question

Quizplus · Accepted Answer

This statement is true. By examining receiving reports and purchase invoices around year-end, the company can have a better understanding of the inventory quantities and values actually on hand as of the end of the reporting period. This helps ensure that the inventory balance on the financial statements is accurate and reflects the true state of the company's inventory.

The Proper Cutoff of Inventories Is Best Achieved When Receiving