Who is affected by chriss decision

Reference no: EM133416824

Question: Chris P. Bacon is the chief accountant for CV Industries, a large manufacturing company. In addition to its normal business activities, the company has excess warehouse space that it rents out to local businesses. Because the typical renter is a small business, CV Industries requires renters to make lease payments for the entire rental period on the day the lease is signed. As a result, CV Industries typically reports a large unearned rent balance on its balance sheet. After making adjusting entries for the current year, Chris prepares the adjusted trial balance and notices that the company's earnings will decline significantly. He presents the adjusted trial balance to the company's CFO, Antonio Beldin, who is concerned about the earnings decline. Mr. Beldin notices the large unearned rent balance and proposes making an additional end-of-period adjusting entry to recognize the entire unearned rent balance as revenue in the current period. Chris protests, reminding Mr. Beldin that the adjusting entry for unearned rent has already been made. Mr. Beldin assures Chris that his proposal is acceptable, reminding Chris that "because we have already received the cash, we have the right to recognize the revenue in the current period." He instructs Chris to make the additional adjusting journal entry. Chris is hesitant to follow these instructions, but he is sensitive to the company's emphasis on earnings growth and makes the adjusting entry as instructed.

1. Is Chris behaving ethically? Why or why not?

2. Who is affected by Chris's decision?

Reference no: EM133416824

Questions Cloud

Describe severity of illness and risk of mortality : Describe Severity of Illness and Risk of Mortality. Discuss which Inpatient DRG system uses SOI and ROM and how it impacts reimbursement.

Evaluate the internal control environment of the company : Evaluate the internal control environment of the company to the extent possible using publicly available information and your analytical review

What are 5 relationship-based guidance strategies : What are 5 relationship-based guidance strategies that educators can use to help children learn about behaviour, regulation, and pro-social skills

Therapeutic communication skills : How would you respond using your Therapeutic Communication Skills to the client's family as a PSW?

Who is affected by chriss decision : Is Chris behaving ethically? Why or why not and Who is affected by Chris's decision - company's emphasis on earnings growth and makes the adjusting entry

List at least 5 steps that you would include in the process : List at least 5 steps that you would include in the process of developing the positive behaviour guidance plan. Make sure to including steps when the plan

How would you ensure that the child''s and family right : While implementing the strategies for individual support and inclusion, how would you ensure that the child's and family's right to privacy is respected?

What is zhangs tax basis in the stock she receives : What is Zhangs tax basis in the stock she receives in the exchange and What is the corporation's adjusted basis in the land received in the exchange

Explain which of the ethical decision-making approaches : Based on your ethical decision-making preferences and the ethical-decision making approaches, how would you respond in this situation? Identify and explain

User Account

All Pages