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Sue Santos is a new entry-level accountant for a snowboard manufacturer. At the end of fiscal period, Santos is advised by supervisor to include as revenue for the period any orders that have been submitted online, but have not yet been shipped. Santos is also advised to include as revenue any orders where payment has already been received but where shipment is still pending.
Required:
Question A. Identify relevant accounting principles that Santos should be aware of in view of the supervisor's instructions.
Question B. What are the ethical factors in this situation?
Question C. Would you recommend that Santos follow the supervisor's directives?
Question D. What alternatives might be available to Santos if she decides not to follow the supervisor's directions?
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