It Is Easy to Test for a Cash Receipts Cutoff

question 20

Multiple Choice

It is easy to test for a cash receipts cutoff error by:

• A) observing the counting of cash at the balance sheet date.
• B) performing a four- column proof- of- cash.
• C) reconciling the bank statement.
• D) tracing recorded cash receipts to bank deposits on the bank statement of a subsequent period.

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Definitions:

Opportunities

Situations or conditions that present a path to gain or achieve something beneficial.

Effectively

In a manner that achieves a desired result efficiently and successfully.

Organizational Pressure

The internal or external forces that influence the behaviors and decisions of individuals within a company.

Internal Source

Originating from within an organization or individual, as opposed to coming from external influences.