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Exercise 1 - 1 6 A ( Algo ) Applications of the Sarbanes - Oxley Act LO 1 - 6 The CFO of the Munoz
Exercise A Algo Applications of the SarbanesOxley Act LO
The CFO of the Munoz Microscope Corporation intentionally misclassified a downstream transportation expense in the amount of $ as a product cost in an accounting period when the company made microscopes and sold microscopes. Munoz rewards its officers with bonuses that are based on net earnings.
Required
a Indicate whether the elements on the financial statements ie assets, liabilities, equity, revenue, expense, and net income would be overstated or understated as a result of the misclassification of the downstream transportation expense. Determine the amount of the overstatement or understatement for each element.
Note: If there is no effect, select "Not affected" from the dropdown provided. Enter all answers as positive values.
tableAssetsLiabilities,Retained earnings,,RevenueExpenseNet income,,
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