ACCA AA · Chapter 9 · Question 5 of 10
Which assertion is most directly tested by examining goods dispatched notes dated just before and just after the year end and checking that the related sales were recorded in the correct period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Cut-off
Explanation
The cut-off assertion is that transactions and events have been recorded in the correct accounting period. Comparing dispatch dates around the year end with the date revenue was recorded directly tests this. Accuracy concerns whether amounts were recorded correctly, not when.
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