Question
Alpha Ventures is being audited for overstating their investments. The balance sheet shows $3,500,000 in investments, but an independent appraisal values them at $3,000,000. There
Alpha Ventures is being audited for overstating their investments. The balance sheet shows $3,500,000 in investments, but an independent appraisal values them at $3,000,000. There are $200,000 in non-existent investments recorded.
Requirement: Adjust the investment value and discuss the consequences of overstating investments on the company's financial statements.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
