What is the objective in testing for cut-off?Select one:O a. That no transactions of the current period have been delayed and recorded in a fuO b. Whether transactions are recorded in the proper period○ c. That no transactions from the prior period are included in the current period's balaO d. Whether all of the current period's transactions are recorded

Break down of the options: Option A: The objective here is to ensure that no transactions from the…

Answered: What is the objective in testing for…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter3: Journalizing Transactions

Section3.4: Starting A New Journal

Problem 3AYU

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Choose the correct option for this one
STATEMENT 1: The purpose of performing compliance tests is to provide reasonable assurance that transactions are recorded at the amounts executed. STATEMENT 2: The process of analyzing subsidiary ledger accounts of accounts receivable to determine those accounts which are current, past due, and collectible is called anolysis. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct
What role does completeness verification serve in accounting cycles? a) Partial verification suffices always b) Random sampling provides sufficient proof c) Ensures all transactions within defined boundaries receive recording d) Boundaries remain undefined
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Which of the following is NOT a purpose of control accounts? O a. to identify all errors where the trial balance agrees O b. to provide a total for trade receivables and trade payables О с. to verify the accuracy of the individual ledger accounts O d. to assist in the preparation of financial statements
What alternative procedures should be applied to accounts that do not return confirmations?
The typical procedures performed to verify that the client has not omitted any amounts from the payables balance include: Select one: a. performing confirmations of payables accounts b. performing analytical review procedures c. vouching recorded payables to supporting documentation d. subsequent payments testing
When two digits in an amount are accidentally recorded the wrong way round will be called as: a. Error of Commission b. Error of Omission c. Error of Transposition d. Error of Principle
Which of the following is the postclosing trial balance not designed to verify?
Which one is correct??
how is the trial balance used to discover errors
We discussed the difference between a) tracing a sample of transactions from the source documents to the ledgers and b) vouching a transaction from the ledger to the source documents. 1. Which assertion would we be testing in each case? 2. Which approach would we use for Accounts Receivable and which would we use for Accounts Payable? And, why?

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