Why Is Determining the "Cut-Off" Point Critical in the Accrual

question 96

Multiple Choice

Why is determining the "cut-off" point critical in the accrual basis of accounting?

• A)Based on the periodicity concept, financial statements are prepared on a regular basis.
• B)It is important to reflect business transactions and events in the subsequent accounting period.
• C)The point in time at which one reporting period ends and another begins is important.
• D)Transactions must be reported in the cut-off period before the statements are authorized.

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Definitions:

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