[Anonymous]

Becker Question –

I don’t understand why RE is not overstated? If WIP is off ->finished goods are off->inventory off-> GOS is off ->Net Income is off->RE is off. Or am I giving them too much credit?

what do you guys think?

[See Pee A]

special insurance is incurred and not paid… (normally goes into WIP)

… WIP is u/s (understated)

… EI is u/s (would normally cause COGS to be o/s and NI to be u/s, however…)

… liability are understated and so are the expenses (offsets the subtract for NI since the expense is not subtracted)

This is a fairly complex question… poorly worded and not an account that is typically used so I wouldn't worry too much. Just understand the above and move onto the rest. Good luck! FAR will knock the wind out of you

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

[Anonymous]

thanks See Pee A.

Only thing is we are postind to WIP, so we are not debiting expence.

You are right let’s move on. I have 1400 MCQ to do for review. LOL

thanks again

[Author]

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