GAAP and the income statement. One of your friends started a business in 2008. At the end of the first year, December 31, 2008, he prepared the following income statement. Give three examples from the statement that indicate the statement was not prepared according to GAAP. (LO 1,3 )

Transcribed Image Text:

Sales $2,700 Inventory purchases (1.500) Rent for 2008 and 2009 (975) Cash on hand 8,650 Due from customers 1,400 Net income $10,275