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:

Scarce Goods

Items that are limited in availability compared to the desires of people to possess them, requiring mechanisms like pricing or rationing to distribute them.

Unlimited Wants

The economic concept that humans have infinite desires or wishes for goods and services, despite having limited resources.

Invention

The creation of a new product or process, often facilitated by the knowledge of engineering and science.

Engineering

The application of scientific, mathematical, and empirical principles to design, develop, and improve structures, machines, and processes.