Purchase cutoff procedures should be designed to test that merchandise is included in the inventory of the client company,if the company:
A)Has paid for the merchandise.
B)Has physical possession of the merchandise.
C)Holds legal title to the merchandise.
D)Holds the shipping documents for the merchandise issued in the company's name.

Question

Quizplus · Accepted Answer

The key factor for including merchandise in inventory is whether the company holds legal title to it, as this determines ownership.

Purchase Cutoff Procedures Should Be Designed to Test That Merchandise