Find and comment on ethical issues involved in skimming

Assignment Help Financial Accounting

Reference no: EM132717175

Brady Dumais owns a small restaurant that operates on a cash-onlybasis; no credit cards are accepted. Brady has taken a bookkeeping course and a tax preparation course. With the help of his spouse, he is able to perform all the bookkeeping duties and prepare his tax returns.
Brady discovers that federal and state income taxes take away 35 percent of his profits. Because his is a cash business, Brady has started the practice of "skimming" sales. Because these sales will not appear in the business records, they will escape taxation, and Brady will be able to retain 100 percent of these revenue dollars.

Problem 1: Identify the stakeholders in this case.

Problem 2: Comment on the legal and ethical issues involved in skimming.

Problem 3: If you were aware of this activity on your business, how would you address it?

Reference no: EM132717175

Questions Cloud

Compute the related accumulated depreciation account : Using the unit of production method, to the nearest dollar, the related Accumulated Depreciation account on adjusted trial balance at December 31, 2020 would

Calculate the price of a bond originally issued : Calculate the price of a bond originally issued six years ago that pays semiannual interest at the rate of 12 percent and matures in seven years at $1,900

Find what acquisition cost of the machinery wa : What acquisition cost of the machinery was?City uses straight-line depreciation for all their machinery, and recorded $115,500 depreciation expense for 2020.

Good measuring tool for a bcba : What are some examples when using frequency measurement and partial interval would be a good measuring tool and not a good measuring tool for a BCBA?

Find and comment on ethical issues involved in skimming : Comment on the legal and ethical issues involved in skimming. With the help of his spouse, he is able to perform all the bookkeeping

Compute for the total product cost : The following costs were incurred during the year by Hopefully Company. Promotional expenses = 28000. Compute for the total product cost

Calculate the operating section of the cash flow statement : Which method would you use to calculate the operating section of the cash flow statement? Would accounting professional's prefer the direct method

What would be your monthly payment : Question - If you were to borrow $9,200 over five years at 0.14 compounded monthly, what would be your monthly payment? Round to two decimal places

Find the balance of raw materials at the end of the quarter : Olay manufacturing company uses the FIFO method of accounting for Raw Materials. Determine the balance of Raw Materials at the end of the quarter.

User Account

All Pages