Which Assertion for Ending Inventory Is Most Likely at Risk

question 6

Multiple Choice

Which assertion for ending inventory is most likely at risk of material misstatement if the gross profit percentage is much greater than last year?

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

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Definitions:

Bankruptcy

A ruling granted by courts to release businesses or individuals from some or all of their debt.

Chapter 11

A form of bankruptcy involving the reorganization of a debtor's business affairs, debts, and assets, named after the U.S. bankruptcy code 11.

Bankruptcy Filings

Legal processes by which individuals or businesses declare their inability to pay off outstanding debts.

Median Income

This refers to the middle income value in a given list, where half the incomes are higher and half are lower.