The Winter Garden accounts-payable file shows this issue: materials received on June 29 but invoiced July 2. Which administrative control should be applied?
Correct Answer
C) AP cutoff review
AP administration should verify cutoff, reconciliation, and authorization before payment or closing.
Why This Is the Correct Answer
AP administration should verify cutoff, reconciliation, and authorization before payment or closing.
Why the Other Options Are Wrong
Option A: bond premium quote
bond premium quote puts the item in the wrong financial bucket, timing, base, or comparison for ap cutoff control.
Option B: field safety memo
field safety memo puts the item in the wrong financial bucket, timing, base, or comparison for ap cutoff control.
Option D: owner warranty letter
owner warranty letter puts the item in the wrong financial bucket, timing, base, or comparison for ap cutoff control.
Memory Technique
An unlabeled Supervisor Checks dollar tells the wrong story.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Accounts Payable Cutoff and Reconciliation; use the stated business record or control rule to verify the answer.
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