The following information is for Brittany Inc 1 To be more

#1806
The following information is for Brittany, Inc.1. To be more concise, the company decided that
only net income should be reported on the income statement.Details on revenues, cost of goods
sold, and expenses were also omitted from the notes.2. Equipment purchases of $270,000 were
partly financed during the year by issuing a $1 10,000 note payable. The company offset the
equipment against the note payable and reported plant assets at $ 160,000. No information has
been provided in the notes.3. During the year, an assistant controller for the company
embezzled $50,000. Brittany's net income for the year was $2.3 million. Neither the assistant
controller nor the money has been found. No information has been provided in the notes.4.
Brittany has reported its ending inventory at S2 .7 million in the financial statements. No other
information on inventories is presented in the financial statements and related notes.5. The
company changed its method of amortizing equipment from the double-declining balance to the
straight-line method. This change is not mentioned anywhere in the financial
statements.Instructions(a) Explain the meaning and implications of the full disclosure principle
and how such information may be provided to users.(b) For each of the situations above,
discuss whether Brittany has followed acceptable accounting and disclosure practices.View
Solution:
The following information is for Brittany Inc 1 To be more

ANSWER
http://paperinstant.com/downloads/the-following-information-is-for-brittany-inc-1-to-be-more/

1/1
Powered by TCPDF (www.tcpdf.org)