An Auditor Is Reviewing Sales Cutoff as of March 31

question 60

Multiple Choice

An auditor is reviewing sales cutoff as of March 31, 2013. All sales are shipped FOB destination and the company records sales three days after shipment. The auditor notes the following transactions: If the entity records the required adjustments, the net effect on income (in thousands of dollars) for the period ended March 31, 2013 is

• A) An increase of 12.
• B) An increase of 8.
• C) A decrease of 12.
• D) A decrease of 8.

---

Definitions:

Experimental Control

The practice in scientific experiments of managing and regulating all variables except those that are being directly tested, to ensure that observed effects can be attributed to the manipulation of the independent variable.

Animal Experiments

The use of non-human animals in research to explore biological processes, test hypotheses, and evaluate behavioral interventions.

First Psychology Course

An introductory level class in psychology, often covering fundamental principles, theories, and historical development of the field.

1838

This is a specific year in the Gregorian calendar, but without additional context, it does not represent a known key term.