Which of the following can be considered to be unethical behavior?
A) Forecasting the amount of ending inventory on hand at the end of a budgetary period
B) Transferring ending inventory to another warehouse in another geographic location
C) Keeping inventory that is unlikely to be used so as to avoid recording a loss
D) Building up inventory in anticipation of increased sales in the next accounting period

Question

Quizplus · Accepted Answer

Keeping inventory that is unlikely to be used to avoid recording a loss is unethical because it misrepresents the financial condition of the company, potentially misleading stakeholders and affecting decision-making based on the financial statements.

Which of the Following Can Be Considered to Be Unethical