When the Client's Physical Inventory Occurs Before the Last Day

question 28

Multiple Choice

When the client's physical inventory occurs before the last day of the year, it is still necessary to perform an accounts payable cutoff at the time of the count. In addition, the auditor must verify whether all acquisitions taking place between the count and the end of the year were added to

• A) the physical inventory.
• B) accounts payable.
• C) accounts payable and cost of goods sold.
• D) the physical inventory and accounts payable.

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Definitions:

Democratic Processes

Procedures that are guided by principles of democracy, allowing for equitable participation and decision-making within organizations or communities.

Unions

Organizations formed by workers to protect their rights and interests through collective action and negotiation with employers.

Corporations

Legal entities that are separate from their owners, with the ability to own property, sue or be sued, and engage in contracts and business activities.

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a national trade union center in the United States representing over 12 million active and retired workers.