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For a recent year, the balance sheet for The Alphabet Soup Company includes accrued expenses of $531,420. The income before taxes for The Alphabet Soup
For a recent year, the balance sheet for The Alphabet Soup Company includes accrued expenses of $531,420. The income before taxes for The Alphabet Soup Company for the year was $510,000.
a. Assume the adjusting entry for $531,420 of accrued expenses was 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 $510,000? Round to one decimal place.
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