XYZ Company Income Statement of Year Ended 31 December 2020 Sales Less Cost of Sales: Begging...

 

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XYZ Company Income Statement of Year Ended 31 December 2020 Sales Less Cost of Sales: Begging Inventory Purchase Ending Inventory Gross Profit Less Expenses: Depreciation Interest Payable Other Expenses Loss for the year Note 1 2 345 £m 10 40 50 -15 12 15 43 £m 100 35 65 70 X -5 D Additional Information: This is the original income statement for company; however, the company conducted creative accounting to four items in the statement. This resulted in making profit for the year (23 m) instead of losses Required: Identified the four items manipulated by the company and explain their effect on the relevant items in the income statement. XYZ Company Income Statement of Year Ended 31 December 2020 Sales Less Cost of Sales: Begging Inventory Purchase Ending Inventory Gross Profit Less Expenses: Depreciation Interest Payable Other Expenses Loss for the year Note 1 2 345 £m 10 40 50 -15 12 15 43 £m 100 35 65 70 X -5 D Additional Information: This is the original income statement for company; however, the company conducted creative accounting to four items in the statement. This resulted in making profit for the year (23 m) instead of losses Required: Identified the four items manipulated by the company and explain their effect on the relevant items in the income statement.

Answer rating: 100% (QA)

These are the four items which could manipulate by Company Sales Other expenses Purchase Ending i... View the full answer