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Russell Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Russell's chemical pesticides. In the coming year, Russell will have environmentally safe and competitive chemicals to replace these discontinued products. Sales in the next year are expected to greatly exceed any prior years. The decline in sales and profits appears to be a one-year aberration. But even so, the company president fears a large dip in the current year's profits. He believes that such a dip could cause a significant drop in the market price of Russell's stock and make the company a takeover target.
Question 1: Who are the stakeholders in this situation?
Question 2: What are the ethical considerations of (a) the president's request and (b) Zoe dating the adjusting entries December 31?
Question 3: Can Zoe accrue revenues, defer expenses, and still be ethical?
Question 4: Can Zoe's accrued revenues and deferred expenses be illegal?
Question 5: Who do you think can discover Zoe's accrued revenues and deferred expenses?
which one of the following accounts would not appear on the consolidated financial statements at the end of the first fiscal period of the combination?
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