Management has been found involved in many fraudulent schemes;a common one is "channel stuffing." What does "channel stuffing" involve?
A)overly complex transactions.
B)growth through stock acquisitions.
C)shipment of goods not ordered.
D)management compensation schemes.

Question

Quizplus · Accepted Answer

Channel stuffing involves shipping goods to customers who have not actually ordered them, in order to artificially inflate sales numbers and meet financial targets. This can lead to inflated inventory levels, future returns or cancellations, and ultimately damage to the company's financial health.

Management Has Been Found Involved in Many Fraudulent Schemes;a Common