Discuss at least two relevant fundamental principles

Assignment Help Accounting Basics
Reference no: EM132618338

Question - Bob works as an accountant for Wizard Gym. The business was established by the owner, Helen Clark. His boss, Frank, is concerned that the profitability of the business has been declining. He is afraid the owner may implement cost reductions by terminating staff if profitability does not improve.

At the end of June, it appears that Wizard Gym will make a loss. Frank instructed Bob to find ways of reporting a profit for the year. He suggested that no year-end accounting adjustments be made this year for accrued expenses and depreciation.

Answer the following questions in the spaces provided below:

1. Who are the stakeholders? List at least four of them.

2. What are the ethical issues? List and explain at least two issues.

3. What action would you take if you were Bob? List and explain at least two options for Bob.

4. With reference to APES 110 Code of Ethics for Professional Accountants, discuss at least two relevant fundamental principles in this case.

Reference no: EM132618338

Questions Cloud

Make the journal entries to record transactions : Question - Make the journal entries to record the following transactions for Tony's Truck Rental in January 2019. Narrations are required
Create a visual representation of strategic pay structures : Create a visual representation of strategic pay structures. This could be a table, chart, or diagram. Create a visual representation of a strategic benefits.
Determine the share value increases by five per cent : Determine the value of the shares in 20 years if the share value increases by 5 per cent every year and the share value increases by 15 per cent every year
Maximizing the shareholders wealth in the company : Merger and Acquisition has always been aimed at maximizing the shareholders wealth in the company. By giving example of a real merger case show;
Discuss at least two relevant fundamental principles : With reference to APES 110 Code of Ethics for Professional Accountants, discuss at least two relevant fundamental principles in this case
What are the amounts of total net operating capital : Find What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000.
Personal mentoring and coaching strategies and techniques : Evaluate your personal mentoring and coaching strategies and techniques. If you mentored another person or group of people in the future,
Maximizing profit of the company : Does maximizing shareholders value equal to maximizing profit of the company? How are they related?
What is the current value of the day : You believe that the price of the NCB stock can either go to $168 or $119, what is the current value of the 180-day Put Option on this stock

Reviews

Write a Review

Accounting Basics Questions & Answers

  First large-scale nuclear power plant

The world's first large-scale nuclear power plant began operations in:

  Discuss the importance of managerial accounting

Discuss the importance of managerial accounting as "decision-making tool" in your organization.Validate an idea with your own experience and additional research

  Present value of gold mine

How much should Mr. Graff pay for a gold mine expected to yield an annual return of $20,000 and to have a life expectancy of 20 years, if he wants to have a 15% annual return on his investment and he can set up a sinking fund that earns 10% a year..

  Prepare journal entries for purchase of the treasury stock

Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. Concord Corporation purchased from stockholders 5,600.

  Direct material and direct labor cost to produce cases

Hale Company makes sets of wrenches. They are trying to decide whether to continue to make the case the wrenches are sold in, or to outsource it to another company. The direct material and direct labor cost to produce the cases total $2.00 per cas..

  Discuss the machinery using the straight-line method

Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method

  Calculate the acquisition cost of the microcomputer

Washamoto Ltd took delivery of a microcomputer and printer on 1 July 20X6, the beginning of its financial year. Calculate the acquisition cost of microcomputer

  What amount should be reported in the balance sheet

What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2017

  Prepare a direct labor budget for the second quarter

The company budgeted production of 384,960 belts during the second quarter. Prepare a direct labor budget for the second quarter

  Determining the statement of financial position

Use the following balances of Tayside Glass Ltd to prepare an statement of comprehensive income for its first year of trading, which ended on 31 March 20X9 and the associated statement of financial position at that date. You will first need to ide..

  Professional judgment framework

Professional judgment framework

  Prepare a depreciation schedule for alternative methods

Tails Corporation purchased and installed electronic payment equipment. Prepare a depreciation schedule for each of the alternative methods.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd