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.

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Definitions:

Interpersonal Relationships

Involves the social connections and interactions between two or more people, which can affect teamwork and collaboration in various settings.

Performance Measures

Criteria or standards used to evaluate the effectiveness, efficiency, and quality of an individual's or organization's work.

Operating Guidelines

A set of rules or procedures designed to guide the operation and management of an organization, system, or process.

Role Specification

The process of defining and clarifying roles or job positions in terms of responsibilities, expectations, and required qualifications.