Inventory Fraud Often Involves Overstating Inventory And/or Understating Cost of Goods

question 11

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) Two of the above
• E) All of the above

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Definitions:

Portfolio Managers

Professionals responsible for making investment decisions and overseeing the composition of investment portfolios.

Successful Purchases

Transactions where the buyer obtains the desired product or service without any significant problems.

Contingency Table

A table used in statistics to summarize the relationship between several categorical variables.

Frequency of Occurrence

The number of times an event or a value appears in a given dataset or period of time.