Practice Quiz

Forensic Accounting

Category - Specialized Forensic Knowledge

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Which of the following best describes the overvaluation of inventory?
  1. Reduction in the cost of goods sold
  2. Quantitative increase in equipment
  3. Qualitative increase in inventory
  4. All of the above
Explanation
Answer: A - The overvaluation of inventory is associated with the reduction of cost of goods sold. Such a reduction in COGS tend to affect the Statement of Comprehensive Income, which is later added on to the Statement of Financial Position.
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