Why Has Accounting Ethics Become an Important Issue in Recent

question 8

Essay

Why has accounting ethics become an important issue in recent years?

Understand the accounting treatment for lease payments received by a lessor in a sales-type lease.

Calculate and understand the gross profit recognition at the inception of a sales-type lease.

Comprehend the objectives of FASB's rules concerning leases.

Recognize the conditions that preclude a lessor from classifying a lease as a sales-type or direct financing lease.

---

Definitions:

Activity Data

Information regarding the actions or operations within a process, often used in activity-based costing to allocate costs more accurately.

Management

The process of planning, organizing, leading, and controlling resources within an organization to achieve its objectives effectively and efficiently.

Cost Changes

Adjustments in the financial outlays associated with different business activities or over time.

Break-even Point

The level of sales at which total revenues equal total expenses, resulting in no net profit or loss.