The client may use a variety of methods to overstate inventory.These include
A)inaccurate inventory counts
B)inaccurate inventory pricing
C)incorrect recognition of customer rebates
D)incorrect FIFO reserve calculations
E)revaluing inventory to market value
F)both A and B
G)both C and E

Question

Quizplus · Accepted Answer

Options A and B are the most common ways in which inventory can be overstated. Inaccurate inventory counts can result from errors made during physical counting, while inaccurate inventory pricing can arise from incorrect valuations or price fluctuations. The other options may result in overstating or understating inventory, but they are not as directly tied to inventory overstatement as options A and B.

The Client May Use a Variety of Methods to Overstate