Purchase cutoff activities should be designed to test that merchandise is included in the inventory of the entity company if the company

Purchase cutoff activities should be designed to test that merchandise is included in the inventory of the entity company if the company 



A. Has paid for the merchandise.

B. Has physical possession of the merchandise.

C. Holds legal title to the merchandise.

D. Holds the shipping documents for the merchandise issued in the company's name.


Answer: Holds legal title to the merchandise


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