In the audit casette "14.3 Off-Balance-Sheet Inventory Financing, " Verity Distillery Company used the product repurchase ploy to ________.

Question

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Verity Distillery Company borrowed money through an undisclosed related party transaction and disguised it as a sale, resulting in understating assets and liabilities on their balance sheet. This was achieved through the product repurchase ploy, which involves selling inventory to a related party who then agrees to sell it back at a later date for a higher price, effectively creating a loan. By not disclosing this related party transaction and treating it as a sale, Verity was able to deceive investors and lenders about their true financial position.

In the Audit Casette "14