A company suffers an inventory loss from water damage due to a broken pipe. The company has never incurred a loss of this type and does not expect this type of damage to occur again. The loss would be reported as a. A reduction of sales revenue.b. Part of income from continuing operations.c. Part of income from discontinued operations.d. Not reported.
A company suffers an inventory loss from water damage due to a broken pipe. The company has never incurred a loss of this type and does not expect this type of damage to occur again. The loss would be reported as a. A reduction of sales revenue.b. Part of income from continuing operations.c. Part of income from discontinued operations.d. Not reported.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 28CYBK
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A company suffers an inventory loss from water damage due to a broken pipe. The company has never incurred a loss of this type and does not expect this type of damage to occur again. The loss would be reported as
a. A reduction of sales revenue.
b. Part of income from continuing operations.
c. Part of income from discontinued operations.
d. Not reported.
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