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A company’s gross profit as a percentage of sales increased from 24% in the year ended 31 December 2001 to 27%
in the year ended 31 December 2002.

Which of the following events is most likely to have caused the increase?

A    An increase in sales volume
B    A purchase in December 2001 mistakenly being recorded as happening in January 2002
C   Overstatement of the closing inventory at 31 December 2001
D   Understatement of the closing inventory at 31 December 2001.

D

D

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D

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c

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a

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 你

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 d

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d

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ab

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a

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