Forced reconciliation of the account says:
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A. B. C. D.C
Forced reconciliation is a term used to describe a fraud technique used to conceal inventory losses or other fraudulent activities. It involves altering inventory records or other financial records to match the physical inventory count or other physical counts, in order to conceal discrepancies or losses.
Option A suggests that forced reconciliation is used to conceal shrinkage, which refers to losses in inventory due to factors such as theft, damage, or spoilage. This option suggests that the perpetrator would alter the inventory records to match the physical count, effectively concealing any shrinkage that had occurred.
Option B suggests that forced reconciliation is used to conceal inventory, which is not a typical usage of this term. Altering the shrinkage record would not result in a forced reconciliation, and would not necessarily conceal inventory losses.
Option C suggests that forced reconciliation is used to conceal shrinkage, which is a valid usage of the term. Changing the perpetual inventory record, which is a running record of inventory levels, to match the physical count would conceal any shrinkage that had occurred.
Option D suggests that forced reconciliation is used to conceal write-offs, which refers to the removal of inventory from the books due to damage, obsolescence, or other reasons. Changing the perpetual inventory record to match the physical count would not necessarily conceal write-offs, as these would be reflected in the record of inventory removed from the books.
In summary, option C is the correct answer, as forced reconciliation is typically used to conceal shrinkage by changing the perpetual inventory record to match the physical inventory count.