Cutoff Procedures for Inventory Purchased Should Be Designed by Companies

question 65

Multiple Choice

Cutoff procedures for inventory purchased should be designed by companies to assure the company that:

• A)inventory owned by the company has been received.
• B)inventory included in the year end inventory count has been paid.
• C)inventory received before year end was recorded before year end.
• D)inventory was correctly valued at year end.

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Definitions:

Necessary Evil

A term used to describe something undesirable but considered unavoidable for achieving a better outcome.

Nineteenth Century

The period from January 1, 1801, to December 31, 1900, characterized by significant industrial, cultural, and political changes worldwide.

Elijah Lovejoy

An American Presbyterian minister, journalist, and news editor who was an abolitionist and died protecting his press from a pro-slavery mob.

Abolitionist Newspaper Editor

An individual who managed or edited a newspaper dedicated to the cause of abolishing slavery.