For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $598,000,000.

Question:

For a recent year, the for The Campbell Soup Company includes accrued expenses of $598,000,000. The income before taxes for the year was $1,106,000,000.
a. Assume the accruals apply to the current year and were 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 $1,106,000,000? Round to one decimal place.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...