Lilia Hussey made two statements to Sami Moneymaker about cut-off procedures: Which of these statements were true?
A) (i) only
B) (ii) only
C) both (i) and (ii)
D) neither (i) nor (ii)

Question

Quizplus · Accepted Answer

(i) is true because cut-off procedures are used to ensure that all transactions that occur up to the end of the accounting period are recorded in the financial statements. (ii) is true because cut-off procedures are used to prevent transactions that occur after the end of the accounting period from being recorded in the financial statements.

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