A company’s gross profit as a percentage of sales increased from 24% in the year ended 31 December 20X1 to 27% in the year ended 31 December 20X2.Which of the following events is most likely to have caused the increase?
A.
An increase in sales volume
B.
A purchase in December 20X1 mistakenly being recorded as happening in January 20X2
C.
Overstatement of the closing inventory at 31 December 20X1
D.
Understatement of the closing inventory at 31 December 20X1