Consider the Following Procedures for the Verification of Accounts Payable

question 35

Multiple Choice

Consider the following procedures for the verification of accounts payable:
-Goods in transit shipped FOB-shipping point were not recorded as purchases in the current period.
_____

• A)Verify the accuracy of schedules and agreement with accounts payable balances.
• B)Apply analytical procedures.
• C)Vouch recorded payables.
• D)Confirm accounts payablE.
• E)Perform purchases cutoff test.
• F)Perform cash disbursements cutoff test.
• G)Examine subsequent payments.
• H)Search for unrecorded accounts payablE.
• I)Compare statement presentation with GAAP.

---

Definitions:

Notice

A formal announcement or warning given to someone.

Incidental Beneficiary

A third party who may benefit from a contract despite not being a direct party to it but has no legal rights to enforce the contract.

Breach of Contract

An act of failing to fulfill the terms of a contract between two or more parties.

Property

Assets or possessions that can be owned or controlled by an individual, corporation, or government, including tangible and intangible items.