A Client's Physical Count of Inventories Was Higher Than the Inventory

question 67

Multiple Choice

A client's physical count of inventories was higher than the inventory quantities shown in the perpetual records. This situation could be the result of the failure to record

• A)sales.
• B)sales discounts.
• C)purchases.
• D)purchase discounts.

---

Definitions:

PI

A mathematical constant represented by the symbol π, approximated as 3.14159, or the ratio of a circle's circumference to its diameter in mathematics. Alternatively, if referring to "present indifference" or a concept specific to an industry or study, clarification is needed.

Positive NPV

An indicator that an investment's present value of net cash flows will exceed its initial cost, suggesting profitability.

Stand-Alone Basis

Refers to evaluating a project or business independently, considering its cash flows, risks, and returns without regard for other investments or projects.

Initial Cost

The initial expense incurred to acquire an asset or start a project, excluding any subsequent costs.