What effect does lowering the estimate for doubtful accounts

Assignment Help Financial Accounting
Reference no: EM132955151

Anton Blair is the manager of a medium-size company. A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year. Each December he estimates year-end financial figures in anticipation of the bonus he will receive. If the bonus is not as high as he would like, he offers several recommendations to the accountant for year-end adjustments. One of his favorite recommendations is for the controller to reduce the estimate of doubtful accounts.

Required:

Problem 1: What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?

Problem 2: Do you believe Blair's recommendation to adjust the allowance for doubtful accounts is within his rights as manager, or do you believe this action is an ethics violation? Justify your response.

Problem 3: What type of internal control(s) might be useful for this company in overseeing the manager's recommendations for accounting changes?

Reference no: EM132955151

Questions Cloud

What percentage of the capital budget must be financed : Sheehan Corp. is forecasting an EPS of P3.00 for the coming year on its 400,000 outstanding shares of stock. What percentage of the capital budget be financed
Is the project acceptable from the parent point of view : If the total investment from the parent company is $10,000,000 in year 0, is the project acceptable from the parent's point of view?
Define a conflict of interest : Define a conflict of interest and give an example. Is a conflict of interest a legal issue? Why or why not? Be specific and provide details.
How a christian worldview impacts technology decisions : A Christian worldview and business ethics go hand in hand. Discuss how a Christian worldview impacts technology decisions and the financial decisions that go al
What effect does lowering the estimate for doubtful accounts : Do you believe Blair's recommendation to adjust the allowance for doubtful accounts is within his rights as manager, or do you believe this action
Explain the process for dealing with agenda items : Explain the process for dealing with agenda items in both an informal and formal meeting. What are the fundamental differences?
Identify the swot factors in a fictitious firm : How do you identify the SWOT factors in a fictitious firm
Explaining the advantages and disadvantages of telecommuting : Write a memo to the department managers explaining the advantages and disadvantages of telecommuting
Practice nurse can bridge the nurse-patient cultural gap : Do you believe that the advanced practice nurse can bridge the nurse-patient cultural gap

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd