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How may the inventory reported in the balance sheet be manipulated to affect an investor's...

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Accounting

How may the inventory reported in the balance sheet be manipulated to affect an investor's opinion regarding the financial health of a business? Would you share with us some of your experiences or an article or event that demonstrates inventory manipulation? Please, cite your resources clearly. (Hint, Crazy Eddie, Bauch and Lomb, etc..) Do you believe that managers need to know about inventory and receivable fraud? Why? Please provide some examples to share.

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