Moreland Ltd.Reported net sales of $10 million and net income of $3 million in 2012.Based on this information,which of the following is an example of a material misstatement on Moreland's 2012 financial statements?
A) Sales equal to $100,000 were recorded before goods were shipped to the customers.
B) Raw materials purchases of $500,000 were received before yearend but remain unaccrued pending receipt of the vendors' invoices.
C) The inventory account included $125,000 worth of obsolete inventory.
D) All of the above
Correct Answer:
Verified
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