An auditor is reviewing sales cutoff as of March 31, 2019. All sales are shipped FOB destination and the company records sales three days after shipment. The auditor notes the following transactions: If the entity records the required adjustments, the net effect on income (in thousands of dollars)for the period ended March 31, 2019 is
A)an increase of 12.
B)an increase of 8.
C)a decrease of 12.
D)a decrease of 8.

Question

An auditor is reviewing sales cutoff as of March 31, 2019. All sales are shipped FOB destination and the company records sales three days after shipment. The auditor notes the following transactions:  If the entity records the required adjustments, the net effect on income (in thousands of dollars)for the period ended March 31, 2019 is
A)an increase of 12. 
B)an increase of 8. 
C)a decrease of 12. 
D)a decrease of 8.

Quizplus · Accepted Answer

The Answer of An auditor is reviewing sales cutoff as of March 31, 2019. All sales are shipped FOB destination and the company records sales three days after shipment. The auditor notes the following transactions:  If the entity records the required adjustments, the net effect on income (in thousands of dollars)for the period ended March 31, 2019 is
A)an increase of 12. 
B)an increase of 8. 
C)a decrease of 12. 
D)a decrease of 8.

An Auditor Is Reviewing Sales Cutoff as of March 31