Assume that the accountant for a drug manufacturing company made the decision to record the companys ending
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Assume that the accountant for a drug manufacturing company made the decision to record the company’s ending drug inventory at an amount higher than its actual worth. How does this decision affect gross profit and net income for that accounting period? In what ways might this decision affect shareholder value? How might this affect confidence in the company’s financial statements in the future?
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The higher the turnover of the inventory the higher the cost which can be suppressed so that ...View the full answer
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Hardik Dudhat
I am semi-qualified Chemical Engineering ,I have scored centum in accounting in my senior secondary and in my graduation. I have always helped my fellow students with their concerns on the subject, i have tutored on various tutoring sites in the past and also have taken home tuitions for degree and MBA students. As a tutor, I don't want my students to just get a solution, I want them to understand the concept and never have a doubt in that area thereon and i believe in excelling and not in educating.
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