The client may use a variety of methods to overstate inventory.These include
A)inaccurate inventory counts
B)inaccurate inventory expense recording
C)incorrect recognition of customer rebates
D)incorrect FIFO reserve calculations
E)failure to write-off obsolete inventory
F)both A and E
G)both B and D

Question

Quizplus · Accepted Answer

Both inaccurate inventory counts and failure to write-off obsolete inventory can result in an overstatement of inventory. This is because inaccurate counts may include items that are no longer in stock, while failing to write-off obsolete inventory means those items remain on the books at their original, potentially inflated, value.

The Client May Use a Variety of Methods to Overstate