Moreland Ltd

question 8

Multiple Choice

Moreland Ltd.Reported net sales of $10 million and net income of $3 million in 2012.Based on this information,which of the following is an example of a material misstatement on Moreland's 2012 financial statements?

• A) Sales equal to $100,000 were recorded before goods were shipped to the customers.
• B) Raw materials purchases of $500,000 were received before yearend but remain unaccrued pending receipt of the vendors' invoices.
• C) The inventory account included $125,000 worth of obsolete inventory.
• D) All of the above

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Definitions:

Support Personnel

Employees who provide various forms of assistance and logistical support in a workplace, not directly involved in core business operations.

Secretaries

Administrative officials responsible for managing the day-to-day operations of an office or organization.

Receptionists

Front desk workers who manage client reception and administrative tasks, often encountered as the first point of contact in offices.

Support Personnel

Individuals who provide various forms of assistance within a legal setting but are not attorneys, including paralegals, legal secretaries, and clerks.