Your Client Performed the Physical Count of Inventory as of November

question 42

Multiple Choice

Your client performed the physical count of inventory as of November 30,one month prior to year-end.Subsequently,your client closed the sales journal on 12/29/XX,two days before year-end,and reported those two days' credit sales in January of the next year.Assuming the client uses a perpetual inventory system,which of the following is most likely to be overstated relating to the year XX financial statements?

• A)Sales.
• B)Cash.
• C)Inventory.
• D)Accounts receivable.

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