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In the present time, the business environment is considered more complicated, challenging and fast growing due to high competition and up-gradation in the technologies. Both competition & technological improvements are the important and significant factors that are affecting the current and future of accounting profession. For example, due to the introduction of new/innovative and dynamic technologies/tools/methods, t...
I understand your concern regarding inventory shrinkage caused due to potential thefts of the same. Since, the income statement makes no provision for the same, it is quite understandable to assume that in absence of any provision for the same, the income statement may be overstated.
However, such a provision is not required in the given case as the perpetual inventory system is being used by the company. Perpetual inventory system re...
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