Concept explainers
(a)
Ethical Case
Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end
To Determine: The stakeholders in this situation.
(b)
To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.
(c)
To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.
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Financial Accounting: Tools for Business Decision Making, 8th Edition
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