Bisbee Ltd

question 52

Essay

Bisbee Ltd. has been fraudulently overstating its inventory in order to "pump up" a lagging income. It started this practice in 2016 and overstated the 2016 income by $9,000. By what amount will they have to overstate December 31, 2017 inventory in order to overstate 2017 income by $14,000?

Learn about different strategies for problem finding in the context of creative processes.

Grasp the importance of preparedness and prior knowledge in enhancing creativity.

Differentiate between intrinsic and extrinsic motivation in the context of creative work.

Understand the legal principles involving the enforceability of agreements and contracts.

---

Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.

Total Asset Turnover

An analysis ratio that evaluates the effectiveness of a corporation's assets in producing sales turnover.

Liquidity Ratio

Financial metrics used to assess a company's ability to meet its short-term obligations using its most liquid assets.

Net Working Capital Turnover

A ratio that measures how effectively a company uses its net working capital to generate sales.