Travis Dorso - Decision Case 1-6

Travis Dorso - Decision Case 1-6 - GB518: Financial...

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GB518: Financial Accounting Principles and Analysis Chapter 1- Accounting as a Form of Communication (Decision Case 1.6 – Identification of Errors in Financial Statements and Preparation of Revised Statements) Travis Dorso GB518- Unit 1 Decision Case Professor Wendy W. Achilles, PhD, CPA
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3. The original financial statements are an overstatement of income. The season ticket revenue does not give sufficient information for an outsider and clearly the 140,000 dollars is revenue for the following years. AS in regards to the 100,000 dollars of advertising revenue, it does not represent the economic reality because it is revenue that has not been collected and since it is known that these revenues would not be collected it is the responsibility of the company to show to the bank and the owners. 4. a. The main parties that will be harmed would be the outsiders because they are provided with information that does not reflect the true economic activity of the firm as referring to the revenues explained in the previous question. However the owners may be able to
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Travis Dorso - Decision Case 1-6 - GB518: Financial...

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