Purchase Cut Off Procedures Should Be Designed to Produce Evidence

question 55

Multiple Choice

Purchase cut off procedures should be designed to produce evidence about whether or not merchandise that is included in the inventory of the company

• A)Has been paid for.
• B)Is physically present in the warehouse.
• C)Is owned by the company (legal title has been transferred).
• D)Relates to the shipping documents for the merchandise issued in the company's name.

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Definitions:

Ethics

A branch of philosophy dealing with moral principles and values governing individual and group behavior.

Good

An item or product that is manufactured or produced for sale, or anything that serves a need or desire.

Right

A moral or legal entitlement to have or obtain something or to act in a certain way.

Central Authority

The main governing body or agency in a political or administrative system responsible for overseeing implementation of certain rules or policies.