Which of the Following Is Most Likely an Indicator of Fraud

question 19

Multiple Choice

Which of the following is most likely an indicator of fraud involving inventory overstatement?

• A) A sudden increase in the inventory turnover ratio
• B) A sharp decrease in gross profit margin
• C) A sudden decrease in sales
• D) A sudden increase in number of days' sales in inventory

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Definitions:

Joint Attention

A fundamental aspect of social communication where two people focus on an object or event at the same time, indicating a shared awareness.

Neolithic Fishing

The practice of catching fish for food that emerged during the Neolithic era, marked by the use of advanced tools and techniques.

Vegeculture

An ancient form of cultivation involving the propagation of perennial plants and root crops, significant in the development of agriculture in various parts of the world.

Seed Crop Cultivation

The agricultural process of growing plants specifically for the production of seeds for planting, food, or oil.