In: Accounting
Assume that a client has a December 31 yearend, and it recorded a January shipment of goods as a December sale. This most directly violates which of the following assertions with regard to sales?
A. CUT OFF
B. COMPLETENESS
C. ACCURACY
D. PRESENTATION AND DISCLOSURE
Ans is A Cut off
Reason:-
Cut off assertion focuses on recording the revenue in the period where it belongs. Here goods are shipped in January but still recorded as sales of December, show
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the violation of cut off assertion.