The following excerpt is from a SECs press release. According to the SEC's order, from the last
Question:
The following excerpt is from a SEC’s press release.
According to the SEC's order, from the last quarter of 2015 to the end of 2018, Kraft engaged in various types of accounting misconduct, including recognizing unearned discounts from suppliers and maintaining false and misleading supplier contracts, which improperly reduced the company's cost of goods sold and allegedly achieved "cost savings.".
Suppose you, as an experienced analyst covering Kraft, plan to make adjustment to the company’s financial statements. What would you do? In your answers, you need to clearly indicate whether an adjustment is an increase (+) or decrease (−) to a balance sheet or income statement account. No calculation is required.
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren