- 1 Marks
AA – L2 – SA – Q2.9 – Receivables Cut-Off
Question
Which of the following should appear in receivables in the financial statements?
A Last GRN this year
B First GRN next year
C First GDN next year
D Last GDN this year
Answer
D
Explanation:
Receivables reflect sales made before year-end. The last goods despatched note (GDN) this year (D) indicates a sale in the current period, creating a receivable. Goods received notes (GRN, A, B) relate to purchases, not receivables. The first GDN next year (C) is a future sale. Thus, D is correct.
- Tags: Cut-off, Goods Despatched Note, ICAG, Receivables
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Uploader: Salamat Hamid