Question: Effects of Errors on Financial Statements For a recent year, the balance sheet for The Alphabet Soup Company includes accrued expenses of $706,520. The income

Effects of Errors on Financial Statements For a recent year, the

Effects of Errors on Financial Statements For a recent year, the balance sheet for The Alphabet Soup Company includes accrued expenses of $706,520. The income before taxes for The Alphabet Soup Company for the year was $680,000. a. Assume the adjusting entry for $706,520 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 $680,000? Round to one decimal place

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