____ is a practice that suppliers use to encourage customers to buy extra inventory so as to increase current-year sales.
A)Kiting
B)Channel stuffing
C)Redating transactions
D)Partial shipments

Question

Quizplus · Accepted Answer

Channel stuffing is a practice used by suppliers to artificially inflate sales by encouraging customers to purchase more inventory than they need. This is typically done near the end of a fiscal quarter or year, in order to boost financial results. The excess inventory may sit idle in the customer's warehouse or be returned later, but the supplier has already recognized the revenue. It is considered an unethical accounting practice. The other options are not related to this concept.

____ Is a Practice That Suppliers Use to Encourage Customers