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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 32
Effects of errors on financial statements
For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $553 million. The income before taxes for Campbell for the year was $1,073 million.
A. Assume the adjusting entry for $553 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 $1,073 million? (Round to one decimal place.)
For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $553 million. The income before taxes for Campbell for the year was $1,073 million.
A. Assume the adjusting entry for $553 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 $1,073 million? (Round to one decimal place.)
Explanation
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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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