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Underwriters must be careful when comparing financial statements using trend analysis because false impressions about a company can be created. Which one of the following
Underwriters must be careful when comparing financial statements using trend analysis because false impressions about a company can be created. Which one of the following might cause an underwriter to have a false impression about a company's health because of an inventories increase on the financial statement? Select one: A. The inventory increase was caused by a decline in seasonal sales. B. The inventory increase was caused by obsolete or damaged inventory. C. The inventory increase was caused by a change in the inventory valuation method. D. The inventory increase was caused by robust sales and growth
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