QUESTION 1 The followings are information about the company XYZ polta Note Em Sales 100 Less...

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QUESTION 1 The followings are information about the company XYZ polta Note Em Sales 100 Less Cost of Good Sales: 30 Gross Profit 70 Selling and Administrated Expanses 3 80 Loss for the year 10 Additional Information: This is the original income statement for the company, however, the company conducted creative accounting and fraud to four tema in the statement. This reulted in making a profit for the year instead of losses. Required: Identify four items/accounts with which the company can manipulate and affect the earning quality by overstating the company profit. You need to mention the names of these items/accounts and explain their effects on the income statement. QUESTION 1 The followings are information about the company XYZ polta Note Em Sales 100 Less Cost of Good Sales: 30 Gross Profit 70 Selling and Administrated Expanses 3 80 Loss for the year 10 Additional Information: This is the original income statement for the company, however, the company conducted creative accounting and fraud to four tema in the statement. This reulted in making a profit for the year instead of losses. Required: Identify four items/accounts with which the company can manipulate and affect the earning quality by overstating the company profit. You need to mention the names of these items/accounts and explain their effects on the income statement.

Answer rating: 100% (QA)

Several companies resort to creative or manipulative accounting techniques to distort the actual financial results Objective and Incentive for each such company may be different but the essential elem... View the full answer