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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