What are the ethical considerations

Assignment Help Accounting Basics

Reference no: EM13148354

You are the assistant controller in charge of general ledger accounting at Riverside Bottling Company.Your company has a large loan from an insurance company.The loan agreement requires that the company's cash account balance be maintained at $200,000 or more, as reported monthly. At June 30 the cash balance is $80,000, which you report to Gena Schmitt, the financial vice president. Gena excitedly instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Gena says, "If we don't get that cash balance over $200,000, we'll default on our loan agreement.They could close us down, put us all out of our jobs!" Gena continues, "I talked to Oconto Distributors (one of Riverside's largest customers) this morning.They said they sent us a check for $150,000 yesterday.We should receive it tomorrow. If we include just that one check in our cash balance, we'll be in the clear. It's in the mail!"

Instructions

(a) Who will suffer negative effects if you do not comply with Gena Schmitt's instructions? Who will suffer if you do comply?

(b) What are the ethical considerations in this case?

Reference no: EM13148354

Questions Cloud

Book value per share of common stock : At the end of 20B, Storage Company reported outstanding common stock (par $20) of $300,000. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred stock. The book value per share of common stock was

Why do we experience atmospheric pressure? : Why do we experience atmospheric pressure? Describe how localized areas of high and low pressure form, as well as what types of weather are associated with each.

How much energy would be needed : If it takes 52 J of energy to warm 7.40g of water by 17°C, how much energy would be needed to warm 7.40g of water by 55 °C

How a transcription factor can both activate and repress : Most transcription factors must form dimers to function. How can homodimerization and heterodimerization explain how a transcription factor can both activate and repress transcription.

What are the ethical considerations : Who will suffer negative effects if you do not comply with Gena Schmitt's instructions? Who will suffer if you do comply? What are the ethical considerations in this case? What alternatives do you have?

Cousin edgar : Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even ..

Calculate the poh and the ph : calculate the pOH and the pH when 45.0mL of 3.00mol/L potassium hydroxide solution is diluted by adding 100.0mL of water

Environmental awareness campaigns in your states or cities : Gregory Rivers1.are there any environmental awareness campaigns in your states or cities? Why do you think many people do nothing about the environmental challenges we face?

What are pros and cons of international food relief programs : Programs have been established to supply food from Western nations to starving people in Africa. Some people argue that such food programs, which may have short term benefits, actually increase the threat of starvation in the future. What are the ..

User Account

All Pages