Question
It's filling out the balance sheet or income statement but I'm not sure which one I should write the numbers on. - The auditors reviewed
It's filling out the balance sheet or income statement but I'm not sure which one I should write the numbers on.
- The auditors reviewed Starbuck's allowance for bad debt and found Starbucks was too conservative and the allowance for bad debt is overstated by $20 million (therefore it must be lowered)
=Balance Sheet=
-Assets
-----Cash
------Investments
-----Accounts Receivable, Gross
----- Allowance for bad debt
----- Inventory
----- Prepaid Expenses
----- PP&E
----- Accumulated Deprecation
----- Goodwill
----- Intangible Assets
-Liabilities + Equity
----- Accounts Payable
----- Deferred Revenues
----- Warranty Liabilities
----- Bonds Payable
----- Discount on Bonds
----- Common Stock (Contributed Capital)
----- Additional Paid In capital
----- Retained Earnings (Earned Capital)
=Income Statement=
-----Revenues
-----Cost of Good Sold
-----Description
-----Expenses/ other
-----Net Income
Where and what numbers should I put on in this case?
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How To Audit Learn How To Become An Auditor
Authors: Mireya Knolton
1st Edition
B097KPLYBF, 979-8524922564
