Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 1EIA
To determine
Discuss the ethical concerns in the given situation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Andy Frame and his supervisor are sent on an out-of-town assignment by their employer. At the supervisor’s suggestion, they stay at the Spartan Inn, across the street from the Luxury Inn. After three days of work, they settle their lodging bills and leave. On the return trip, the supervisor gives Andy what appears to be a copy of a receipt from the Luxury Inn for three nights of lodging. Actually, the supervisor indicates that he prepared the Luxury Inn receipt on his office computer and plans to complete his expense reimbursement request using the higher lodging costs from the Luxury Inn.Required: What are the ethical considerations that Andy faces when he prepares his expense reimbursement request and how often do you think this happens in the real world?
A)
You have seen an advertisement in a local newspaper for a job vacancy in the Bahrain Museum
during the holidays. You have decided to apply for the job.
Write a letter (around 150 words) to Mr. BLACK, the director of the Museum. Include the following in
your letter:
introduce yourself: (YOUR NAME IS NOOR AHMED and your school is "SUCCESS SCHOOL")
explain what experience and special skills you have
explain why you are interested in the job
You are a summer intern working for a major professional services firm. During your lunch break each day, you and
fellow intern, Bob, eat at a local sandwich shop. One day, Bob's girlfriend joins you for lunch. When the bill arrives,
Bob pays with a company credit card and writes the meal off as a business expense. Bob and his girlfriend continue to
be "treated" to lunch for a number of days. You know Bob is well aware of a recent memo that came down from
management stating casual lunches are not valid business expenses. When you ask Bob about the charges, he replies,
"Hey, we're interns. Those memos dont apply to us. We can expense anything we want."
QUESTIONS:
1. Who are the relevant facts?
2. What Are the Ethical Issues?
3. Who Are the Primary Stakeholders?
4. What Are the Possible Alternatives?
5. What Are the Ethics of the Altermatives?
6. What Are the Practical Constraints?
7. What Actions Should Be Taken?
Chapter 6 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Prob. 1SCCh. 6 - Prob. 2SCCh. 6 - Prob. 3SCCh. 6 - Prob. 4SCCh. 6 - Separation of duties refers to separating all of...Ch. 6 - Which of the following is not a control activity?...Ch. 6 - Prob. 7SCCh. 6 - Prob. 8SCCh. 6 - Internal auditors focus on _________ ; external...Ch. 6 - Prob. 10SCCh. 6 - Prob. 11SCCh. 6 - Prob. 12SCCh. 6 - Prob. 1SECh. 6 - Fraud triangle (Learning Objective 3) 5-10 min....Ch. 6 - Prob. 3SECh. 6 - Internal controls (Learning Objective 2) 5-10 min....Ch. 6 - Prob. 5SECh. 6 - Prob. 6SECh. 6 - Prob. 7SECh. 6 - Prob. 8SECh. 6 - Prob. 9SECh. 6 - Prob. 10SECh. 6 - Prob. 11SECh. 6 - Accounting terminology (Learning Objectives 1 4)...Ch. 6 - Prob. 13SECh. 6 - Prob. 14SECh. 6 - Prob. 1CFSAPCh. 6 - Prob. 1EIACh. 6 - Prob. 2EIACh. 6 - Prob. 3EIACh. 6 - Prob. 4EIACh. 6 - Prob. 5EIACh. 6 - Prob. 6EIACh. 6 - Case 7. Kelly Straton, a trusted employee of...Ch. 6 - Prob. 8EIACh. 6 - Prob. 1FACh. 6 - Industry Analysis Purpose: To help you understand...Ch. 6 - Prob. 1SBACh. 6 - Prob. 1WC
Knowledge Booster
Similar questions
- Dylan worked for a propane gas distributor as an accounting clerk in a small Midwestern town. Last winter, his brother Mike lost his job at the machine plant. By January, temperatures were sub-zero, and Mike had run out of money. Dylan saw that Mike’s account was overdue, and he knew Mike needed another delivery to heat his home. He decided to credit Mike’s account and debit the balance to the parts inventory because he knew the parts manager, the owner’s son, was incompetent and would never notice the extra entry. Months went by, and Dylan repeated the process until an auditor ran across the charges by chance. When the owner fired Dylan, he said, “If you had only come to me and told me about Mike’s situation, we could have worked something out.” Requirements What can a business like this do to prevent employee fraud of this kind? What effect would Dylan’s actions have on the balance sheet? The income statement? How much discretion does a business have with regard to accommodating…arrow_forwardDylan worked for a propane gas distributor as an accounting clerk in a small Midwestern town. Last winter, his brother Mike lost his job at the machine plant. By January, temperatures were sub-zero, and Mike had run out of money. Dylan saw that Mike’s account was overdue, and he knew Mike needed another delivery to heat his home. He decided to credit Mike’s account and debit the balance to the parts inventory because he knew the parts manager, the owner’s son, was incompetent and would never notice the extra entry. Months went by, and Dylan repeated the process until an auditor ran across the charges by chance. When the owner fired Dylan, he said, “If you had only come to me and told me about Mike’s situation, we could have worked something out.” Requirements What can a business like this do to prevent employee fraud of this kind? What effect would Dylan’s actions have on the balance sheet? The income statement?arrow_forwardBarry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruction. In the off-season, the facilities are used for weekend retreats and coaching clinics. The following transactions took place during the month of June: June 1 Bird invested cash in the business, $10,000. 1 Purchased basketballs and other athletic equipment, $3,000. 2 Paid Hite Advertising for flyers that had been mailed to prospective campers, $5,000. 2 Collected registration fees, $15,000. 2 Rogers Construction completed work on a new basketball court that cost $12,000. Arrangements were made to pay the bill in July. 5 Purchased office supplies on account…arrow_forward
- You are the commissioner of a state lottery system that sponsors daily and weekly drawings. Lottery tickets have not been selling well over the past few months. Describe at least two ways you could take advantage of people's use of the availability heuristic to boost sales. Explain why you would judge your tactics to be fair or unfair to your customers. 1. 2. Imagine you have a friend who just last month adopted a set of siblings, a thirteen-month-old and a four-year-old, from an orphanage in a developing country. The orphanage was not a stimulating environment and the four-year-old can only speak a few words in her native language. The thirteen-month-olddoes not seem to speak words in either her native language or in English. Both children appear physically healthy and have started to adjust quite well, emotionally, but your friend is concerned about their language development. Discuss whether their language development is typical of children their age and theextent to which each…arrow_forwardes Kristen Lu purchased a used automobile for $28,600 at the beginning of last year and incurred the following operating costs: Depreciation ($28,600 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost Relevain ry The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,720. The car is kept in a garage for a monthly fee. Average fixed cost per mile Variable operating cost per mile Average cost per mile $ 5,720 $ 3,000 $ 1,500 $780 $ 0.11 per mile Required: 1. Kristen drove the car 22,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)arrow_forwardBridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor society's annual scholarship dinner. Her firm supports the presentation because it hopes to recruit more excellent employees like Bridget. The university is 196 miles from her office. In order to get to the dinner by 5:00 p.m., she will need to leave work at 1:00 p.m. She can drive her personal car and be reimbursed $0.50 per mile. The dinner ends at 9:00 p.m. Company policy allows her to spend the night if the return trip is four hours or more. There is a student-run inn and conference center across the street from campus that charges $101 per night. Instead of driving, she could catch a 3:00 p.m. flight that has a round-trip fare of $300. Flying would require her to rent a car for $39 per day and pay an airport parking fee of $25 for the day. The company pays a per diem of $35 for incidentals if the employee spends at least six hours out of town. (The per diem…arrow_forward
- You are working for a large firm that has asked you to attend á career fair at a university that is 185 miles from your office. You need to be there at 9:00 a.m. on a Monday morning. You can drive your personal car and be reimbursed $0.55 per mile, but you would need to leave home at 5:30 a.m. to get to the event and set up on time. Company policy allows you to spend the night if you must leave town before 6:00 a.m. The hotel across the street from campus charges $85 per night. Instead of driving, you could catch a 7:00 a.m. flight with a round-trip fare of $260. Flying would require you to rent a car for $29 per day, and you would have an airport parking fee of $20 for the day. The company pays a per diem of $40 for incidentals if you spend at least 6 hours out of town. (The per diem would be for one 24-hour period for either flying or driving.) As a manager, you are responsible for recruiting within a budget and want to determine which is more economical. Use the information provided…arrow_forwardBridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor society's annual scholarship dinner. Her firm supports the presentation because it hopes to recruit more excellent employees like Bridget. The university is 196 miles from her office. In order to get to the dinner by 5:00 p.m., she will need to leave work at 1:00 p.m. She can drive her personal car and be reimbursed $0.50 per mile. The dinner ends at 9:00 p.m. Company policy allows her to spend the night if the return trip is four hours or more. There is a student-run inn and conference center across the street from campus that charges $101 per night. Instead of driving, she could catch a 3:00 p.m. flight that has a round-trip fare of $300. Flying would require her to rent a car for $39 per day and pay an airport parking fee of $25 for the day. The company pays a per diem of $35 for incidentals if the employee spends at least six hours out of town. (The per diem…arrow_forwardBridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor society’s annual scholarship dinner. Her firm supports the presentation because it hopes to recruit more excellent employees like Bridget. The university is 196 miles from her office. In order to get to the dinner by 5:00 p.m., she will need to leave work at 1:00 p.m. She can drive her personal car and be reimbursed $0.50 per mile. The dinner ends at 9:00 p.m. Company policy allows her to spend the night if the return trip is four hours or more. There is a student-run inn and conference center across the street from campus that charges $101 per night. Instead of driving, she could catch a 3:00 p.m. flight that has a round-trip fare of $300. Flying would require her to rent a car for $39 per day and pay an airport parking fee of $25 for the day. The company pays a per diem of $35 for incidentals if the employee spends at least six hours out of town. (The per diem…arrow_forward
- You are working for a large firm that has asked you to attend a career fair at a university that is 185 miles from your office. You need to be there at 9:00 a.m. on a Monday morning. You can drive your personal car and be reimbursed $0.55 per mile, but you would need to leave home at 5:30 a.m. to get to the event and set up on time. Company policy allows you to spend the night if you must leave town before 6:00 a.m. The hotel across the street from campus charges $85 per night. Instead of driving, you could catch a 7:00 a.m. flight with a round-trip fare of $260. Flying would require you to rent a car for $29 per day, and you would have an airport parking fee of $20 for the day. The company pays a per diem of $40 for incidentals if you spend at least 6 hours out of town. (The per diem would be for one 24-hour period for either flying or driving.) As a manager, you are responsible for recruiting within a budget and want to determine which is more economical. Use the information provided…arrow_forwardPeter Pan is a self-employed delivery driver. On one delivery trip, Peter Pan received a $100 ticket for being double parked in violation of city traffic laws. In an attempt to avoid the ticket, Peter Pan slipped the parking enforcement officer a $20 bill to "look the other way". Unfortunately, the parking enforcement officer took the $20, but still gave Peter Pan the ticket. How much of the $120 can Peter Pan deduct as a business expense?arrow_forwardOlivia and Yixing are volunteering at a cat rescue shelter. The shelter supervisor asks them to clean out kennels and haul bags of cat food from the donation area into storage. It takes Olivia 6 minutes to clean out a kennel and 6 minutes to move a bag of food. It takes Yixing 10 minutes to clean out a kennel and 12 minutes to move a bag of food. For the following questions, round each answer to the nearest tenth. d. Yixing’s opportunity cost of cleaning a kennel: bags of food moved. e. Yixing’s opportunity cost of moving one bag of food: kennels cleaned. f. Yixing says it does not matter which task each of them performs, because Olivia is faster at both tasks. Is she correct? No, Yixing should clean out the kennels, and Olivia should move the food bags. No, Olivia should clean out the kennels, and Yixing should move the food bags. Yes, Olivia should do both tasks because she is faster at both. No, Yixing should do both tasks so that she…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage