In Determining That the Accounts Payable Cutoff Is Correct, It

question 82

Multiple Choice

In determining that the accounts payable cutoff is correct, it is essential that the cutoff tests be coordinated with the

• A) confirmation of payables.
• B) tests of long-term liabilities.
• C) observation of inventory.
• D) cash count.

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Definitions:

Employees

Individuals who are hired by a business to perform tasks in exchange for wages, benefits, or salaries.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Maker

In financial terms, the party that creates or issues a financial instrument, such as a check or promissory note.

Payee

The individual or entity to whom a payment is to be made or credited.