transfer some land that I own into the company's name, and that will beef up our balance sheet. Garry can you shave P500,000 from expenses? Then we can probably get the bank loan that we need." Garry Santos, company chief accountant: "Mark, you are asking too much. Accounting principles are designed to keep this sort of thing from happening." Required: 1. What is the fundamental ethical issue in this situation? 2. Discuss how the company president's proposals violate accounting principles.

transfer some land that I own into the company's name, and that will beef up our balance sheet. Garry can you shave P500,000 from expenses? Then we can probably get the bank loan that we need." Garry Santos, company chief accountant: "Mark, you are asking too much. Accounting principles are designed to keep this sort of thing from happening." Required: 1. What is the fundamental ethical issue in this situation? 2. Discuss how the company president's proposals violate accounting principles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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