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Cut-off sales refer to the practice of recognizing sales transactions at the end of an accounting period to ensure accurate financial reporting. It involves determining which sales should be recorded in the current period and which should be deferred to the next period, based on when the goods were shipped or delivered. This is crucial for maintaining accurate revenue figures and aligning them with the corresponding expenses for that period. Proper cut-off procedures help prevent misstatements in financial statements.

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1mo ago

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