Question
You are provided with the following information on Tapioca Resort Inn: Beginning inventory$40,000Purchases$30,000Ending inventory$55,000Employee meals$1,000Transfer to Food & Beverage Department$1,500 The goods are sold for
You are provided with the following information on Tapioca Resort Inn:
Beginning inventory$40,000Purchases$30,000Ending inventory$55,000Employee meals$1,000Transfer to Food & Beverage Department$1,500
The goods are sold for $30,000. However, upon a deeper inspection, you noticed that your ending inventory should have been $53,000 instead of $55,000. Based on the available information, you calculate that the profit for this hotel was:
Understated by @2,000
Overstated by $2,000
Overstated by $7,000
Understated by $7,000
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Essentials Of Forensic Accounting
Authors: Michael A Crain, William S Hopwood
2nd Edition
1948306441, 978-1948306447
