Management may have incentive to fraudulently overstate inventory balances in order to cover up
A)understated cost of goods sold
B)poor financial performance
C)poor internal control
D)taxable income

Question

Quizplus · Accepted Answer

Overstating inventory can make a company's financial performance appear better than it actually is, which can be an incentive for management to commit fraud.

Management May Have Incentive to Fraudulently Overstate Inventory Balances in Order