The client may use a variety of methods to overstate inventory.These include
A)inaccurate purchase history
B)inaccurate inventory pricing
C)incorrect recognition of manufacturer rebates
D)incorrect FIFO reserve calculations
E)writing off obsolete inventory
F)both A and B
G)both B and C

Question

Quizplus · Accepted Answer

Both options B and C can be used to overstate inventory. Inaccurate inventory pricing can be used to make the inventory appear to be worth more than it actually is, while incorrect recognition of manufacturer rebates can result in an overstatement of inventory value. The other options listed may not necessarily result in an overstatement of inventory.

The Client May Use a Variety of Methods to Overstate