Which of the following factors could account for the shortfall?
1 Sales were lower than expected.
2 The opening inventories had been overstated.
3 The closing inventories of the business were higher than the opening inventories.
4 Goods taken from inventories by the proprietor were recorded by debiting drawings and crediting purchases with
the cost of the goods.
A. All four factors
B. 1, 2 and 4 only
C. 2 only
D. 3 and 4 only
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