The tobacco companies have paid billions

Assignment Help Accounting Basics

Reference no: EM13703947

The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $3,000,000,000 in settlement payments in one year.

Requirements
1.Suppose you are the chief financial officer (CFO) responsible for the financial statements of Philip Morris. What ethical issue would you face as you consider what to report in your company's annual report about the cash payments? What is the ethical course of action for you to take in this situation?
2.What are some of the negative consequences to Philip Morris for not telling the truth? What are some of the negative consequences to Philip Morris for telling the truth?

Reference no: EM13703947

Questions Cloud

Consider an electric motor with shaft power output : Consider an electric motor with shaft power output of 20kW and an efficiency of 88%. Determine the rate at which the motor dissipates heat to the room it is in when the motor operates at full load. In winter, this room is normally heated by a 2-kW re..

The entries in 2007 to record the tax loss carryforward : Assume the management of Marcos Corp. thinks that it is more likely than not that the loss carryforward will not be realized because it is difficult to project future profitability (this is before results of 2008 operations are known). Marcos C..

What is the direct labor rate variance : What is the direct labor rate variance for the month? is it favorable or unfavorable?question 2b. what is the direct labor efficiency variance for the month? is it favorable or unfavorable?

Influenced the level of inherent risk arthur andersen : 2. The SEC noted six reasons why the bill and hold sales recorded by Mattel did not qualify as consummated sales transactions. Identify and discuss the general conditions for recognizing revenue from sales transactions. Also, identify circumst..

The tobacco companies have paid billions : The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip Morris, a leading cigarette manufacturer, paid more than $3,000,000,000 in settlement payments in one year.

How much net income would the company earn : The Moore Co. has done an extensive analysis of its cost structure and provides the following cost function:C(X)=6X+100,000. The company sells its merchandise for $10 per unit. How much net income would the company earn, before taxes, on the sa..

Melt a cubic inch from room temperature : Given the melting point of steel to be approximately 1500C, how much energy is required to melt a cubic inch from room temperature? How much water would this amount of energy raise by 10oC from room temperature?

The maximum and minimum temperatures of the cycle : An air-standard Brayton refrigeration cycle maintains a refrigerated space at -230C while rejecting heat to the surroundings at 27oC. The pressure ratio is given as 3, with a mass flow rate of 0.08 kg/s.

Monocultural econom : Currently monocultural economy as agricultural sector is neglected the country is also blessed with super abundance human and material resources.

User Account

All Pages