Procedures Related to the Purchases Cut-Off Assertion Should Be Designed

question 22

Multiple Choice

Procedures related to the purchases cut-off assertion should be designed to test whether or not all inventory:

• A)purchased and received immediately before year-end was recorded in the correct period.
• B)on the year-end statement of financial position was recorded at lower of cost or market.
• C)on the year-end statement of financial position was paid for by the company.
• D)owned by the company is in the possession of the company.

---

Definitions:

Low Level of Trust

Refers to situations where there is minimal confidence in the reliability, truth, or ability of someone or something, often hindering cooperation and communication.

Maximize Cohesiveness

Strategies or practices aimed at strengthening the unity and solidarity of a group to achieve common goals.

Norms

Implicit rules and expectations that guide behavior of group members, helping to shape attitudes and actions within a social context.

Informal Rules

Unwritten guidelines or norms governing behavior within a group or organization, which can influence actions and decisions alongside formal regulations.