Answer: 51.5%
Explanation:
Accrued expenses are to be included in the income statement because they show expenses that have not been paid but belong to the current period.
If accrued expenses were not included in the income calculation then the income is overstated because expenses reduce income.
Income is overstated by the accrued expenses amount which is $553 million
The percentage of this to the reported income is:
= 553 / 1,073 * 100
= 51.5%
