Question: In this group activity, you will be given a set of financial statements and a list of items that might need correcting. You will be

In this group activity, you will be given a set of financial statements and a list of items that might need correcting. You will be required to 

(a) Decide if an adjusting journal entry is required, 

(b) Justify your decision by referring to the conceptual framework (including revenue and expense recognition criteria)

(c) Calculate profit. Your decisions may have an impact on the annual bonuses that senior management members hope to receive.

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