The inventory account included

Reference no: EM131018311

Moreland Ltd. Reported net sales of $10 million and net income of $3 million in 2014. Based on this information, which of the following is an example of a material misstatement on Moreland's 2014 financial statements?

Sales equal to $100,000 were recorded before goods were shipped to the customers.

Raw materials purchases of $500,000 were received before yearend but remain unaccrued pending receipt of the vendors' invoices.

The inventory account included $125,000 worth of obsolete inventory.

Reference no: EM131018311

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