Request pose an ethical dilemma for the controller

Assignment Help Accounting Basics

Reference no: EM13156617

The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz Co. should be 2% of net credit sales. The president of Ruiz Co., nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which reflects a 6% growth rate, will be a more sustainable rate for Ruiz Co.

Instructions:

(a) Who are the stakeholders in this case?

(b) Does the president's request pose an ethical dilemma for the controller?

Reference no: EM13156617

Questions Cloud

Comparison and contrast essay for my composition : I need help writing a comparison and contrast essay for my Composition I class. I already have a topic picked out. I want to compare two different schools. My question is what is the best way to do this? Should I compare it by subject by subject or s..

Influences of heredity-environment-psychological development : Distinguish between the influences of heredity and environment on (Oprah Winfrey) psychological development.

Explain what happens to observed prices in posted offer : Explain what happens to observed prices in posted offer and double auction markets when there at least two sellers.

Explain why delta p will change with generations : A population of sexually reproducing organisms with non-overlapping generations has two alleles: A1 and A2; p is the frequency of A1, q is the frequency of A2 (p+q=1).

Request pose an ethical dilemma for the controller : (a) Who are the stakeholders in this case? (b) Does the president's request pose an ethical dilemma for the controller? (c) Should the controller be concerned with Ruiz Co.'s growth rate? Explain your answer.

Calculate the elasticity for each variable at that point : Calculate the elasticity for each variable at that point and briefly comment on what information this gives you for each variable.

One aspect of indigenous religions : Define indigenous religion, and describe at least one aspect of indigenous religions that exists in a similar form in a traditional mainstream religion.

Compare, contrast primary and secondary metabolites : Compare, contrast primary and secondary metabolites. How do primary metabolites affect our lives? How do secondary metabolites benefit humans? (i.e. pharmaceutical, agricultural, etc.)

Probability the agent take three minutes for personal time : If no calls are currently being processed, what is the probability the agent can take 3 minutes for personal time without being interrupted?

User Account

All Pages