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Explain the various methods employed by companies to manipulate the valuation of inventory. Where appropriate provide...

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Finance

  1. Explain the various methods employed by companies to manipulatethe valuation of inventory. Where appropriate provide relevantexamples.

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The management of companies might engage in earnings management in order to overstate net income and convey a rosy picture to the users of the financial statements by employing several methods of accounting manipulation The most common way to overstate profits would be by overstate ending inventory Net Income Gross Profit Period Expenses Gross Profit Sales Cost of Goods Sold Cost of Goods Sold    See Answer
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Explain the various methods employed by companies to manipulatethe valuation of inventory. Where appropriate provide relevantexamples.

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