IIA Exam IIA-ACCA Topic 6 Question 44 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 44
Topic #: 6

In the current year, a merchandising organization had an inventory turnover ratio of 3.0, which was less than the industry average of 6.5. Which of the following offers the most likely explanation for this difference?

AThe organization has understated the amount of inventory in its financial statements

BThe organization has overstated the cost of purchases in its financial statements.

CThe organization is holding obsolete or damaged items in its inventory

DThe organization experienced an unexpectedly large increase in sales shortly before year end.

Show Suggested Answer

Suggested Answer: C

by Melissa at May 05, 2022, 06:02 AM

Limited Time Offer

25%

Off

Get Premium IIA-ACCA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!