Purchase cutoff procedures should be designed to produce evidence of whether 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 in determining whether merchandise should be included in a company's inventory is whether the company holds legal title to the merchandise. Legal title indicates ownership, which is the basis for including items in inventory.

Purchase Cutoff Procedures Should Be Designed to Produce Evidence of Whether