What potential consequences are there to the practice

Assignment Help Financial Accounting
Reference no: EM132557729

Bob is the new controller of Sacramento Corp. The previous controller was promoted to Chief Financial Officer (CFO) and is now Bob's boss. He instructs Bob that he should continue the practice of printing checks during the discount period, but then holding the checks for a few days before mailing them out. This allows Sacramento Corp. to take the purchase discount, but still keep the funds in their account to earn a few more days interest. Bob asks the CFO if the suppliers have complained about the practice and the CFO replies "the suppliers haven't taken away the discount so they can't be too upset about it."

Question 1: Is it ethical for Bob to continue this practice? Should he continue it? Explain your answer. What potential consequences are there to this practice? If Sacramento Corp. operated in a smaller town would that impact your decision?

Reference no: EM132557729

Questions Cloud

What would be your recommendation to erika : About LUNA PEN case. What would be your recommendation to erika on situation number 5?
Why should a firm centralize its decision making : Why should a firm centralize its decision making?
Gram positive organisms live primarily : Gram positive organisms live primarily on the surface of your external barriers. What if these bacteria were to get inside your body?
Find what amounts should show on the balance sheet : Find What amounts should he show on his balance sheet for receivables and on his income statement as an expense for his second year financial statements?
What potential consequences are there to the practice : Is it ethical for Bob to continue this practice? Should he continue it? Explain your answer. What potential consequences are there to this practice?
Describe the female reproductive cycle : Describe the female reproductive cycle, the hormones involved and what each one does.
What key performance indicators might use : If you were going to build a dashboard or a balanced scorecard for a nursing home, what key performance indicators might you use?
About the physiology of the human sexual response : Common misconceptions about the physiology of the human sexual response. What has opened your eyes to the truth about sex.
Compute the terminal value of the residual operating income : Assuming sales in the second, Compute the terminal value of the residual operating income (ROPI) at the end of the horizon period.

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