For a recent year, the balance sheet for the campbell soup company (cpb) includes accrued expenses of $604 million. the income before taxes for campbell for the year was $849 million. a. assume the adjusting entry for $604 million of accrued expenses was not recorded at the end of the year. by how much would income before taxes have been misstated? $ million b. what is the percentage of the misstatement in (a) to the reported income of $849 million? round to one decimal place. %

What could explain why a decrease in taxes could lead to a less-than-proportionate increase in output? a. as a result of diminishing returns to current consumption, consumers may choose to spread the extra spending over the long term rather than consuming the proceeds of a tax cut all at once. b. consumers may choose to save much of the tax cut in anticipation of having to pay higher taxes in the future. c. a decrease in taxes will necessitate lower government outlays, thus largely offsetting the higher consumption expenditures of households. d. all of the above. e. a and b only.