User Account

All Pages

Ethical accountant understands generally accepted accounting

Assignment Help Financial Accounting
Reference no: EM133272744

The ethical accountant is the manager and accountant for a small company that is privately owned by three individuals. He has always given the owners cash-based financial statements. The owners are not accountants and do not understand how financial statements are prepared. Recently, the business has experienced strong growth, and inventory, accounts receivable, and capital assets have become more significant company assets.

The ethical accountant understands generally accepted accounting principles and knows that net income would be lower if he prepared accrual-based financial statements. He is afraid, however, that if he gave the owners financial statements prepared on an accrual basis, they would think he is not managing the business well - they might even decide to fire him.

Following the case format discuss the accounting and ethical issues.

Reference no: EM133272744

Questions Cloud

Hedge of net investment in foreign subsidiary : Is this a fair value hedge, cash flow hedge, or a hedge of net investment in a foreign subsidiary?
Staff skills may be recognised as intangible assets : Discuss whether the patent and the staff skills may be recognised as intangible assets in terms of IAS 38.
Acquisition of the second-hand equipment : C's acquisition of the second-hand equipment will result to reduction in capital. The value of the note that will C get from the partnership's liquidation?
Understatement of inventor affect assets : How would the understatement of inventor affect assets (which specific asset would it affect and in which direction?)
Ethical accountant understands generally accepted accounting : The ethical accountant understands generally accepted accounting principles and knows that net income would be lower
The space and asset markets : Most of tech firms in the Silicon Valley decided to let 50% of their employees to work remotely. What would be the impact for commercial real estate in the area
Updating should-cost targets at four key triggering events : Consideration should be given to updating Should-cost targets at four key triggering events.
Financial and operational health perspective : how do you analyze the financial statements of this company from a financial and operational health perspective.
Why is cash forecasting important in business : Why is cash forecasting important in the business? How can it help a business to prosper and manage its assets?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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