The CPA Firm Auditing Capri Corporation Found That Net Income

question 140

Multiple Choice

The CPA firm auditing Capri Corporation found that net income had been overstated.Which of the following could be the cause?

• A)Failure to take advantage of purchase discounts by paying within the discount period.
• B)Overstatement of inventory at year-end.
• C)Use of the last-in,first-out (LIFO)method of valuing inventory in a period of rising prices.
• D)Failure to record payment of an account payable to a supplier on the last day of the year.

---

Definitions:

Traffic

The movement of vehicles or people through roads, airways, or any pathway, often used to describe the congestion or flow in transport systems.

Parking Rates

The fees charged for the use of parking spaces, typically determined by duration, location, and demand.

Fixed Number

A constant value or quantity that does not change in a given context or scenario, often used in mathematical or economic models.

Stadium Management

The administration and operation of a stadium, including event scheduling, maintenance, and security.