Effects of Errors on Financial Statements For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $676 million. The income before taxes for Campbell for the year was $272 million. a. Assume the adjusting entry for $676 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated? 676 V million b. What is the percentage of the misstatement in (a) to the reported income of $272 million? Round to one decimal place. 2.5 X % Feedback Check My Work a. Revenues and expenses net out to calculate net income. Consider the impact on net income if an accrued expense is not recorded. b. Divide the omitted expense by the income amount.
Effects of Errors on Financial Statements For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $676 million. The income before taxes for Campbell for the year was $272 million. a. Assume the adjusting entry for $676 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated? 676 V million b. What is the percentage of the misstatement in (a) to the reported income of $272 million? Round to one decimal place. 2.5 X % Feedback Check My Work a. Revenues and expenses net out to calculate net income. Consider the impact on net income if an accrued expense is not recorded. b. Divide the omitted expense by the income amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question B is what I'm struggling with. I'm trying to take the 676 and divide it by 272 then round it.
![**Effects of Errors on Financial Statements**
For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $676 million. The income before taxes for Campbell for the year was $272 million.
**a.** Assume the adjusting entry for $676 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated?
**Answer:**
$676 million
**b.** What is the percentage of the misstatement in (a) to the reported income of $272 million? **Round to one decimal place.**
**Answer:**
2.5%
**Feedback:**
- **a.** Revenues and expenses net out to calculate net income. Consider the impact on net income if an accrued expense is not recorded.
- **b.** Divide the omitted expense by the income amount.
**Navigation:**
- **Check My Work**: [Link to Check My Work]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7056223b-3629-4cb5-af5b-a5df296d6895%2F05cbae84-343e-4205-b3ff-53c4ce89b6f7%2Fsxmrguk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Effects of Errors on Financial Statements**
For a recent year, the balance sheet for The Campbell Soup Company includes accrued expenses of $676 million. The income before taxes for Campbell for the year was $272 million.
**a.** Assume the adjusting entry for $676 million of accrued expenses was not recorded at the end of the year. By how much would income before taxes have been misstated?
**Answer:**
$676 million
**b.** What is the percentage of the misstatement in (a) to the reported income of $272 million? **Round to one decimal place.**
**Answer:**
2.5%
**Feedback:**
- **a.** Revenues and expenses net out to calculate net income. Consider the impact on net income if an accrued expense is not recorded.
- **b.** Divide the omitted expense by the income amount.
**Navigation:**
- **Check My Work**: [Link to Check My Work]
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