User Account

All Pages

What is the ethical dilemma that you face

Assignment Help Accounting Basics
Reference no: EM131819002

Case - Assume that you were recently hired as a staff accountant for Environmental Solutions, Inc. You report to Karen, the director of financial reporting, who in turn reports to the CFO. One of your first assignments is to prepare the adjusting entries for the end of the second quarter and to draft the income statement. Karen instructs you to let her know as soon as you have the estimated earnings for the quarter. She says she will need to review the adjusting entries and earnings calculation with the CFO.

After reviewing your work with the CFO, Karen tells you to change the entry that you recorded for depreciation expense on the company's fleet of trucks from $229,000 to $184,000. At first you thought that you must have made some mistake in calculating the amount of depreciation, so you re-check your calculations. Surprisingly, you come up with the same amount again. So tactfully you ask Karen for an explanation for the change. She tells you that depreciation is only an estimate and that the CFO will change his mind about estimates based on earnings.

Requirements

1. What is the effect of the change in the amount of the depreciation expense on the company's second-quarter earnings?

2. What is the ethical dilemma that you face?

3. What are the alternatives that you might consider and what are the potential consequences of each alternative?

4. What are some of the common pitfalls used to rationalize unethical behavior?

Reference no: EM131819002

Questions Cloud

Caffeinated energy drinks-a growing problem : The article "Caffeinated Energy Drinks-A Growing Problem" (Drug and Alcohol Dependence [2009]: 1-10) gave the following data on caffeine concentration
Difference between the mean and median : What does the large difference between the mean and median tell you about this data set?
Value of the proportion of successes for sample : a. If being registered to vote is considered a "success," what is the value of the proportion of successes for this sample?
Compute the mean number of speeding-related : a. Compute the mean number of speeding-related fatalities for these 20 days. b. Compute the median number of speeding-related fatalities for these 20 days.
What is the ethical dilemma that you face : Assume that you were recently hired as a staff accountant for Environmental Solutions, Inc. What is the ethical dilemma that you face
Distribution of wait times for these two procedures : What does this suggest about the distribution of wait times for these two procedures?
What is the chance that you will make at least the desired : Should you take the project? Explain why or why not.Determine the risk involved by calculating the probability of no profit .
Discuss the various types of training media you would use : Discuss the various types of training media you would use to educate your corporate students and how these media would be put to use.
Volatility of house prices by stating : Houses in California are expensive, especially on the Central Coast where the air is clear, the ocean is blue, and the scenery is stunning

Reviews

Write a Review

Accounting Basics Questions & Answers

  Scott has 4800 that he wants to invest for 3 years he can

scott has 4800 that he wants to invest for 3 years. he can invest this amount at his credit union and earn 4 percent

  Derive the demand curves for ggc''s product in market

Derive the demand curves for GGC's product

  Create an argument whether an auditor concerned

Create an argument whether an auditor concerned with appropriate segregation of duties would use a data flow diagram or system flowchart

  Composition of the risky portfolio

Now add a set of indifference curves and illustrate how an investor's optimal portfolio is some combination of the risky portfolio and the risk-free asset. What is the composition of the risky portfolio?

  Weighted average method

Using the weighted average method, the equivalent units produced by the department were

  Prepare the journal entries to record transactions on books

Prepare the journal entries to record these transactions on the books of Sailing Boats Ltd. Sailing Boats uses a perpetual inventory system

  Mateo corporation is considering purchasing a new delivery

mateo corporation is considering purchasing a new delivery truck. the truck has many advantages over the companys

  Realization of the gain on the sale of land

On November 8, 2006, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?

  What amount would have been used in the year end adjusting

Warner Company's year end unadjusted trial balance shows accounts receivable of $ 99,000, allowance for doubtful accounts of $ 600 (credit), and sales of $ 280,000. Uncollectibles are estimated to be 1.5% of accounts receivable.

  Discuss prepare a three-part consolidated

Prepare all eliminating entries required to prepare a three-part consolidated

  How you would account for the repairs on the existing van

Explain how you would account for the repairs on the existing van (are they expenses or assets? Or both?)

  Compute the margin for alyeska services company

Alyeska Services Company, a division of a major oil company, Compute the margin for Alyeska Services Company

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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