Your Client's Inventory Turnover Has Decreased from 8

question 73

Multiple Choice

Your client's inventory turnover has decreased from 8.2 times to 5.6 times during the year. Based on this decrease, which financial report assertion would you be least concerned with?

• A) Existence.
• B) Rights and obligations.
• C) Valuation and allocation.
• D) Completeness.

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Definitions:

Business Plan

A detailed document outlining the objectives, strategies, financial projections, and operational guidelines for a new or existing business.

Free Riders

Individuals or entities that benefit from resources, goods, or services without paying for them or contributing to their provision.

Externalities

Side effects or consequences of an industrial or commercial activity that affect other parties without this being reflected in market prices.

Consumers

Individuals or groups that purchase goods or services for personal use and are the end-users in the supply chain.