Inherent risk is often high for an account such as
A) inventory.
B) land.
C) capital stock.
D) notes payable.

Question

Quizplus · Accepted Answer

Inventory is a high-risk account because it is subject to obsolescence, theft, damage, and other factors that can affect its value. The risk of error or fraud in recording inventory can also be high, which adds to the inherent risk of the account. Land, capital stock, and notes payable are typically considered low risk accounts.

Inherent Risk Is Often High for an Account Such as