In the Making Ethical Decisions Box Titled,"Barking-Up the Wrong Financial

question 253

Multiple Choice

In the Making Ethical Decisions box titled,"Barking-Up the Wrong Financial Statement," the situation provides the student with an ethical dilemma that might present itself to an accounting professional.The story focuses on: Is it ethical to __________________________

• A)transfer long-term liabilities on the balance sheet to the balance sheet of a secondary firm?
• B)inflate the values of assets on the Balance Sheet?
• C)account for sales and profits at a time period,before or after the time these sales and profits actually occurred?
• D)change one's method of accounting for inventory during the same fiscal year?

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Definitions:

Corporate Officers

Individuals appointed to manage the day-to-day operations and make major corporate decisions in a company.

Federal Law

Federal Law consists of statutes and regulations that have been enacted by the national government of a country, governing subjects that fall under its authority.

Convicted

Found guilty of a crime in a court of law after a trial or through a guilty plea.

Corporations

Legally constituted entities that are separate from their owners and have the rights to own assets, incur liabilities, and sell stocks.