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

question 56

Multiple Choice

A client's physical count of inventory was higher than the inventory per the perpetual records.This situation could be the result of the failure to record:

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

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Definitions:

Ownership Percentage

The fraction of a company's shares owned by a particular shareholder, representing their portion of control and claim on assets.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, particularly in the United States.

Exert Influence

To exert influence means to use power, authority, or persuasion to affect or direct others' actions, decisions, or opinions.

Investee Company

A company in which another entity has an ownership interest, signifying a partial or full influence over the company despite not having full control.