For a recent year the balance sheet for the company includes accrued expenses of $1,022,000,00. The income before taxes for the company for the year was $1,001,000000.
a. Assume the accruals apply to the current year and were not recorded at the end of the year, how much would income before taxes have been misstated?
b. What is the percentage of the misstatement in to the reported income of S1,001,000,000.