Management Incentives to Overstate Ending Inventory Include All of the Following

question 39

Multiple Choice

Management incentives to overstate ending inventory include all of the following except:

• A)increasing the current year's income.
• B)increasing next year's income.
• C)increasing the collateral value for a loan.
• D)increasing the current ratio.

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Definitions:

Unconscious Wishes

Desires or wants that reside within the unconscious mind, often influencing behavior and thoughts without an individual's conscious awareness.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Biological Urges

Fundamental instinctive impulses that drive behaviors necessary for survival, such as hunger, thirst, and reproduction.

Narcolepsy

A sleep disorder characterized by excessive sleepiness, sleep paralysis, hallucinations, and in some cases episodes of cataplexy (partial or total loss of muscle control).