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hello everyone my name is maroon Iamp;#39;m the VP of operations at farat accounting lectures and Iamp;#39;m more than happy to guide you through an inventory and accounts payable cutoff exercise before we dive into the facts of the exercise let us first explain the impact that cutoff misstatements could have on the balance sheet and the income statement examiners on the CPA exam love to test your ability to analyze and determine the effect of misstatements or adjusting journal entry on certain metrics therefore it is important to be comfortable with dealing with the different scenarios that you may face in a task-based simulation through understanding and a lot of practice letamp;#39;s assume a company has a beginning inventory of 10,000 and purchases of 30,000 the cost of goods available for sale would be the addition of the beginning inventory and the purchases 10 + 30 equals 40 those are the goods that were available during the whole year for the company to sell did the company