Which of the Following Would Not Be an Example of an Inventory

question 32

Multiple Choice

Which of the following would not be an example of an inventory record error or fraud?

• A) Unrecorded receipts or shipments.
• B) Incorrect date of recording.
• C) Fictitious sales or adjustments.
• D) Incorrect sales price.

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Definitions:

Equity Capital

Funds raised by a company in exchange for shares of ownership, representing the value of shareholders' equity.

Retaining Earnings

Profits that a company has decided to keep or reinvest in itself rather than pay out as dividends to its shareholders.

Cost of Debt

The effective rate that a company pays on its total debt, reflecting the expense of borrowing funds.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted, including equity, debt, preferred stock, and any other long-term debt.