Which of the following procedures is best for identifying unrecorded trade accounts payable? a. Examining unusual relationships

Question:

Which of the following procedures is best for identifying unrecorded trade accounts payable?

a. Examining unusual relationships between monthly accounts payable balances and recorded cash payments.

b. Reconciling vendors’ statements to the file of receiving reports to identify items received just prior to the balance sheet date.

c. Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports.

d. Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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