What Is the Objective in Testing for Cut-Off

question 100

Multiple Choice

What is the objective in testing for cut-off?

• A) that no transactions of the current period have been delayed and recorded in a future period
• B) whether all of the current period's transactions are recorded
• C) whether transactions are recorded in the proper period
• D) that no transactions from the prior period are included in the current period's balances

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Definitions:

Profit

The financial gain achieved when the total revenues generated from business activities exceed the total costs and expenses incurred.

Market Value

The ongoing price for the transaction of assets or services within the marketplace.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.