Lilia Hussey made two statements to Sami Moneymaker about cut-off procedures: Testing cut-off transactions is particularly important for transactions close to year end.
Cut-off procedures help determine whether transactions have been recorded in the correct accounting period.
Which of these statements were true?

Question

Quizplus · Accepted Answer

Both statements are true. Testing cut-off transactions is important for transactions close to year end because it ensures that transactions are recorded in the appropriate period, avoiding errors in financial statements. Cut-off procedures help determine whether transactions have been recorded in the correct accounting period by verifying the timing of transactions and their proper inclusion in the financial statements.

Lilia Hussey Made Two Statements to Sami Moneymaker About Cut-Off