Question: he CPA is engaged to audit a client with a calendar year end. The client took a complete inventory on December 31st and adjusted its

he CPA is engaged to audit a client with a calendar year end. The client took a complete inventory on December 31st and adjusted its inventory account and detailed perpetual inventory records to agree with the physical inventory. The client considers a sale to take place in the period the goods are shipped. Which of the following is a cutoff error that understates income?

	Shipped	Recorded as Sale	Received by Customer	Recorded by Customer
a.	1/2	1/2	1/3	1/4
b.	1/2	12/31	1/3	1/4
c.	12/30	12/31	1/2	1/2
d.	12/30	1/2	1/2	1/3

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