Inventory Fraud Often Involves Overstating Inventory And/or Understating Cost of Goods

question 24

Multiple Choice

Inventory fraud often involves overstating inventory and/or understating cost of goods sold. The result is a decrease in the:

• A) gross profit ratio.
• B) inventory turnover ratio.
• C) number of days sales in inventory.
• D) accounts receivable turnover ratio.

---

Definitions:

Workplace

a location or virtual setting where individuals engage in tasks, activities, or jobs that contribute to an organization's goals, often in exchange for compensation.

Extraversion

A personality trait characterized by sociability, assertiveness, and a high level of outgoingness, contrasting with introversion.

Manipulativeness

A trait or behavior characterized by influencing or controlling others to one's own advantage, often in a deceitful way.

Boastfulness

The act of speaking with excessive pride and self-satisfaction about one's achievements, possessions, or abilities.