Inventory and Income Manipulation The president of SOS Inc. is concerned that the net income at year-end
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Inventory and Income Manipulation The president of SOS Inc. is concerned that the net income at year-end will not reach the expected figure. When the sales manager receives a large order on the last day of the fiscal year, the president tells the accountant to record the sale but to ignore any inventory adjustment because the physical inventory has already been taken. How will this affect the current year’s net income?
next year’s income? What would you do if you were the accountant? Assume that SOS uses a periodic inventory system.
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Related Book For
Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton
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