Aaron Works in the Accounting Department for a Large Manufacturing

question 25

True/False

Aaron works in the accounting department for a large manufacturing company. His manager instructed him to record a transaction in an incorrect manner to increase the revenue for the fiscal year. Aaron is pondering whether to report this issue to a higher-level manager. He is experiencing an ethical dilemma.

---

Definitions:

Objectivity Concept

An accounting principle ensuring that financial statements are based on verifiable and unbiased evidence.

Financial Statements

Reports that summarize the financial performance and position of a business, including the income statement, balance sheet, and cash flow statement.

Financial Accounting Standards Board

An autonomous body tasked with creating and enhancing financial accounting and reporting norms in the United States.

Securities and Exchange Commission

A US government agency responsible for enforcing federal securities laws, regulating the securities industry, and overseeing the nation's stock and options exchanges.