Lilia Hussey Made Two Statements to Sami Moneymaker About Cut-Off

question 14

Multiple Choice

Lilia Hussey made two statements to Sami Moneymaker about cut-off procedures: Testing cut-off transactions is particularly important for transactions close to year end.
Cut-off procedures help determine whether transactions have been recorded in the correct accounting period.
Which of these statements were true?

• A) (i) only
• B) (ii) only
• C) both (i) and (ii)
• D) neither (i) nor (ii)

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Definitions:

Economy

A system of production, distribution, and consumption of goods and services among a group of people.

Opportunity Cost

The detriment of not pursuing the second-top option when engaging in decision-making.

Manufacturing

The process of using machines, tools, and labor to produce goods for use or sale.

Export

Goods or services sold by a country to buyers in another country.