Question
Omega Pharmaceuticals is being audited due to suspected overstated assets. The company's balance sheet lists $5,000,000 in assets, but an independent appraisal values the assets
Omega Pharmaceuticals is being audited due to suspected overstated assets. The company's balance sheet lists $5,000,000 in assets, but an independent appraisal values the assets at $4,000,000. There are also $500,000 in fictitious assets recorded.
Requirement: Adjust the asset value and discuss the consequences of overstating assets on financial statements.
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
25th edition
978-1285069609, 1285069609, 978-1133607601
