You are the owner of a retail store conducting merchandising activity. You need to go to the
Question:
You are the owner of a retail store conducting merchandising activity. You need to go to the bank for a loan and know that your profits are too low and the bank will probably deny your request. In what ways can you manipulate your income statement and your balance sheet to falsely show increased profit that is net income? Be specific as to the how you would accomplish this. Keep in mind that the net profit on the income statement ends up on the balance sheet in retained earnings so you have to make adjustments to both and also possibly the cash flow statement so it all ties together and balances. List at least four different ways.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma