When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except
A)the purchase requisition file
B)the cash receipts file
C)the purchase order file
D)the receiving report file

Question

Quizplus · Accepted Answer

The cash receipts file would not be useful when searching for unrecorded liabilities because cash receipts do not relate to liabilities. The other files listed (purchase requisition, purchase order, and receiving report) are all related to the purchase and receipt of goods or services, which could result in accruing a liability that has not yet been recorded.

When Searching for Unrecorded Liabilities at the End of an Accounting