Which of These Factors Contributes Least to the Risk of Misstatement

question 44

Multiple Choice

Which of these factors contributes least to the risk of misstatement of inventories?

• A) the volume of transactions.
• B) location at a large single site.
• C) vulnerability to spoilage or damage.
• D) all of the factors listed contribute equally to the risk of misstatement of inventories

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Definitions:

Perfectly Elastic

A market scenario where the demand or supply responds infinitely to any change in price.

Optimal R&D

Refers to the ideal level of spending or investment in research and development activities that maximizes innovation benefits relative to costs.

Expected-Rate-Of-Return

The predicted amount of gain or loss an investment is expected to generate, expressed as a percentage.

Interest-Rate Cost-Of-Funds

The expense associated with borrowing funds, measured by the interest rate that banks or other financial institutions charge for the use of their money.