An example of an error would be:
A) Purchasing inventory from a related party.
B) Counting an inventory item twice when taking a physical inventory.
C) Holding back invoices so that accounts payable are understated.
D) Receiving kickbacks in exchange for issuing a purchase order to a vendor.

Question

Quizplus · Accepted Answer

Counting an inventory item twice when taking a physical inventory is an example of an error as it results in an overstatement of inventory and can lead to distorted financial statements. The other options are examples of fraudulent activities.

An Example of an Error Would Be