Answer:
Two adjustments must be made to year 1's financial statements:
- The income statement must be adjusted since net income increased because cost of goods sold decreased.
- The balance sheet must be adjusted since retained earnings will increase because net income increased.
Explanation:
The retrospective approach hides any changes with the accounting methods, and shows the financial statements as if the new accounting method was used all along and there was no error or change.
This is a case of Food safety fraud by Penanut corporation of America and the culprits where sentenced to prison in Albany,Georgia
Explanation:
- In the above mentioned case the managers (c)who shipped the product knowing that it was contaminated where also punished .
- The managers where punished for their role in shipping the salmonella -positive peanut product,for falsifying the microbiological results.
- The evidence of the trial reflected that tainted food shipping led to a salmonella outbreak in 2009 with more than 700 reported cases of salmonella poisoning in 46 states.
Answer and Explanation:
Inventory is an asset and is posted on the asset side of the balance sheet. As per accounting standards regarding inventory valuation, it can be either valued at historical cost or at market price, whichever is lower.
Historical cost is the cost at which asset was acquired. Market price is the price which would be received if the asset is replaced as on the date on which balance sheet is prepared. Inventory is valued at lower of the above mentioned costs.
Answer:
The net income will decrease and also the total assets will also decrease
Explanation:
Here, we want to know the combined effect on net income and total assets of company that made a decision of distributing assets as a property dividend.
As the asset value is down the entry is asset (credit) and loss on asset (debit)
This will effect the net income as it will come down and total assets value also come down
