A credit balance in a client's inventory records would suggest failure to record purchases.

Question

Quizplus · Accepted Answer

A credit balance in inventory records means that more inventory has been credited (probably due to sales returns or overstocking) than the inventory that has been debited for purchases. This indicates a failure to record all the purchases, which would result in discrepancies in inventory values and incorrect financial statements.

A Credit Balance in a Client's Inventory Records Would Suggest