Answer to Question #186906 in Accounting for Milan

Question

I asked a similar question awhile ago and you guys answered my question perfectly. Can you guys do the same thing here. The response I received is not helpful because the question is not getting answered. I appreciate all the help you guys provide me and I can't thank you enough. Just analyze each question and provide me a simple explanation based on that question.

5. What does it mean when you Overstate your Expenses?

6. What does it mean when you Understate your Expenses?

7. What does it mean when you Overstate your Current Assets?

8. What does it mean when you Understate your Current Assets?

9. What does it mean when you Overstate your Profit?

10. What does it mean when you Understate your Profit?

11. What does it mean when you Overstate your Assets?

12. What does it mean when you Understate your Assets?

Answer 1

Overeste expenses to pay less income tax. Under-spending due to accounting errors. Underestimating the cost of transport services by applying an incorrect transport tariff. Overestimation of insurance payments for cargo safety with the use of an inflated insurance tariff.

Overestimation and understatement of assets and current assets: Overestimation of current assets: expenses not written off in a timely manner continue to be reflected in the inventory, which means that they are not reflected in the cost of goods sold, works or services, the cost of raw materials and materials, and work in progress. Understatement of assets - the organization does not have the right to revalue fixed assets. Due to the overvaluation of shares reflected in the consolidation of financial statements, companies can increase the amount of goodwill, and with it the total value of assets on the balance sheet.

Understatement of profits is possible by: including in the cost price fictitious expenses that were not actually carried out and will not be paid (for example, for current repairs), overstating the amount of reserves (for example, for doubtful debts).

This is either scam or accounting errors