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.

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Definitions:

Collaboratively

In a way that involves two or more people or entities working together towards a common goal or project with shared efforts.

Open And Direct Approaches

Communications or methods that are straightforward and unambiguous, aiming for clarity and honesty.

Tie Up Loose Ends

To complete or finalize unfinished aspects of a project or situation.

Effective Listening

The act of attentively hearing, understanding, and responding to spoken messages, fostering better communication.