What is meant by making a proper year-end cutoff? Explain the effects of errors in the cutoff

Question:

What is meant by making a proper year-end cutoff? Explain the effects of errors in the cutoff of sales transactions in both the income statement and the balance sheet.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Auditing and Other Assurance Services

ISBN: 978-0078025617

19th edition

Authors: Ray Whittington, Kurt Pany

See More Books

Question Posted: Oct 25, 2014 05:52 AM

See More Questions

The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2011: Additional Information 1. Dividend revenue is recognized on the cash...
The following partial income statement and partial balance sheet are for Baker Company. From this information, calculate the cash paid for inventory and for each of the operating expenses. BAKER...
The 2016 income statement and comparative balance sheet of McKnight, Inc. follow: Additionally, McKnight purchased land of $27,800 by financing it 100% with long-term notes payable during 2016....
Let a = (4, 5) and 6 = (-4,-2). Find the projection of b onto a. proj; b = =V
A barge filled with scrap iron is in a canal lock. If the iron is thrown overboard, does the water level at the side of the lock rise, fall, or remain unchanged? Explain.
An outdoor track is a full circle of diameter 130 m. A runner starts from rest and reaches her maximum speed in 4 s with constant tangential acceleration and then maintains that speed until she...
The magnetic field magnitude is $4.0 \mathrm{mT}$ at a position $6.2 \mathrm{~mm}$ radially away from a long current-carrying wire. Calculate $(a)$ the current in the wire and $(b)$ the...
Sampson Company operates a manufacturing facility where several products are made. Each product is considered a business segment, and the product managers have the opportunity to receive a bonus...
* Installing integrated software needs more memory than installing many .standalone applications True O False
Whitewater Adventures manufactures two models of kayaks, Basic and Deluxe, using a combination of machining and hand finishing. Machine setup costs are driven by the number of setups. Indirect...
Identify the general objectives of the auditors substantive procedures with respect to any major asset category.
Charles Halstead, CPA, has a number of clients who desire audits at the end of the calendar year. In an effort to spread his workload more uniformly throughout the year, he is preparing a list of...
A 25.0-cm-long metal rod lies in the xy-plane and makes an angle of 36.90 with the positive x-axis and an angle of 53.10 with the positive y-axis. The rod is moving in the + x- direction with a speed...
Orange Company produces computers and is trying to determine if it should make or buy its central processing unit (CPU). A vendor currently supplies the CPUs at a price of $190 per unit + $1 for...
D The Incomplete Table below shows the statistics of 3 Shares obtained from historical data of the companies and the market. The Expected return of the market, FM = 6% and the risk-free rate, rf is...
A jar of 150 jelly beans contains 22 red jelly beans, 38 yellow, 20 green, 28 purple, 26 blue, and the rest are orange. Let B = the event of getting a blue jelly bean Let G= the event of getting a...
Create an estimated retirement budget using a compound interest inflation rate of 3%. Estimate a retirement date based upon your projected retirement date 2060. Using the monthly spending...
3.31 The output elasticity of demand for input x; is defined as y (w, y) = (ax(w, y)/ay) (y/x;(w, y)). (a) Show that iy (w, y) = (y)eiy (w, 1) when the production function is homothetic. (b) Show...
Verify that Fig. 44-1 shows that the number of electrons in a shell can be up to 2n 2 . A-1 m =+ 0=3 me=0 2 (=) 0 m+ 200- (2.00+) n = 2 1 == 'me (=1 0-'m m,+ m = m - +1 M, (2,1-1, -- (21,-1,+210...
Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.
Individually or in groups, select a business problem you can learn more about by conducting survey research. You will create an online survey for all of your classmates to take, so design your...
Identify three possible disclosure issues for payroll expense and payroll-related liabilities.
Multiple Choice 1. During the year being audited, the Matthews Corporation changed from a system of recording time worked on clock cards to an IT payroll system in which employees record time in and...
You have been hired by Morris & Son, Inc., to manage its human resource department. As a first step, you want to determine personnel needs and assigned duties in order to prevent errors and fraud in...
How does the implementation of a centralized database system impact the efficiency and data accuracy in a large retail organization?
Identify some processes related to a workplace, assess the benefits and concerns that may arise as a result of the relative sizes of P-time with respect to D-time. In a table include the benefits and...
industry competitors and customers analysis & develop a communications pla. Choose any company and analyze its industry, competitors and customers. Then either present theirs communications plan or...

What is meant by making a proper year-end cutoff? Explain the effects of errors in the cutoff

Question:

Step by Step Answer:

Making a proper cutoff refers to the process of assigning transactions occurrin...View the full answer

Principles of Auditing and Other Assurance Services

Students also viewed these Auditing questions