Chapter 9, Problem 1EIA

1.

To determine

Identify the impact of accrued liabilities on financial statements and also explain whether the accrued liabilities for wages and interest payable be removed from the balance sheet.

2.

To determine

Explain whether there is a valid reason for wanting to reduce the estimated warranty liability and also explain whether reason provided by the accountant is valid.

3.

To determine

Explain the ethical issue involved in this case.