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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 24
Effects of errors on financial statements
For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $598 million. The income before taxes for The Campbell Soup Company for the year was $1,106 million.
a. Assume the adjusting entry for $598 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated
b. What is the percentage of the misstatement in (a) to the reported income of $1,106 million Round to one decimal place.
For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $598 million. The income before taxes for The Campbell Soup Company for the year was $1,106 million.
a. Assume the adjusting entry for $598 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated
b. What is the percentage of the misstatement in (a) to the reported income of $1,106 million Round to one decimal place.
Explanation
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(a)Income before taxes is stated at $1,1...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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