The audit of year-end physical inventories should include steps to verify that the entity's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a:
A. purchase in the current period.
B. sale in the subsequent period.
C. sale in the current period.
D. purchase return in the subsequent period.
Answer: C
You might also like to view...
Discuss how companies can use the Internet to build their brands. Give an example of a company that has done so
What will be an ideal response?
For a liability to exist,
a. the identity of the party owed must be known. b. the exact amount must be known. c. a past transaction or event must have occurred. d. an obligation to pay cash in the future must exist.
The ___________________________ school of thought argues that market imperfections create problems such as persistent unemployment, low wages and poor working conditions.
Fill in the blank(s) with the appropriate word(s).
List the eight steps used to develop a time study-based labor standard
What will be an ideal response?