Question

When searching for un-recorded liabilities at the end of an accounting period, the accountant would search all of the files except:_____.
a. the purchase requisition file.
b. the cash receipts file.
c. the purchase order file.
d. the receiving report file.

Answer 1

Answer:

b. the cash receipts file.

Explanation:

Unrecorded liabilities at the end of the accounting period was outstanding so, that the outstanding balance will not be reconciled, if it gets paid then at time of payment the entry is required and the balance will be reconciled. Cash balance cannot determine the outstanding balance. So, accountant will not search the cash receipt file.

All other entries relates to the purchases of the company which could result as a outstanding liability.