An effective way to identify liabilities that were unrecorded at year-end is
A)reviewing liabilities recorded after year-end
B)reviewing journal entries after year-end
C)reviewing account closings after year-end
D)reviewing receiving reports that have not been matched with invoices

Question

Quizplus · Accepted Answer

Reviewing receiving reports that have not been matched with invoices can reveal liabilities that were incurred but not yet recorded at year-end. This method allows for the identification of goods or services received but not yet invoiced, which can result in the recognition of additional liabilities that were not previously recorded on the company's balance sheet. Options A, B, and C all involve reviewing records that were created after year-end, which may not be helpful in identifying unrecorded liabilities as they would not be reflected in those records.

An Effective Way to Identify Liabilities That Were Unrecorded at Year-End