For Several Years, a Client's Physical Inventory Count Has Been

question 67

Multiple Choice

For several years, a client's physical inventory count has been lower than what was shown on the books at the time of the count so that downward adjustments to the inventory account were required. Contributing to the inventory problem could be weaknesses in internal control that led to the failure to adjust the accounting records for some:

• A) purchases returned to vendors.
• B) sales returns received.
• C) sales discounts allowed.
• D) cash purchases.