The cut-off tests for salare designed to ensure that both saland receivablare recorded in the correct accounting period and that inventoriand accounts payable are recorded in the same accounting period.

Question

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The cut-off tests for sales and receivables ensure they are recorded in the correct period, while inventory and accounts payable cut-off tests ensure they are recorded in the same period.

The Cut-Off Tests for Salare Designed to Ensure That Both