Saira Ortiz Has Been a Manager at Qwikall a Large

question 126

Essay

Saira Ortiz has been a manager at Qwikall a large telecommunications company for ten years. She has worked very hard but she had to take two unpaid leaves of absence to assist her sick mother and then later she took unpaid leave when her children needed care. As a result she has received only two promotions during that time. She realizes that she probably will not receive any more promotions since the company views her as somewhat unstable.
Last week a newly promoted manager bragged that he could just "sniff out" accounting errors. Saira angered at his arrogance deliberately recorded sales salaries as rent expense. Other accountants were present when she did so. The dollar amounts of her changes were not significant.
Required:
Has there been a violation of ethical standards? Explain.

Understand the uses of different types of accounting journals and their applications in transactions.

Comprehend the vertical and horizontal analysis techniques and their applicability in evaluating financial performance.

Gain knowledge on recording transactions in specific journals based on the nature of the transaction.

Understand the role and structure of subsidiary ledgers in accounting systems.

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Definitions:

Never-ending Process

A continuous, unending cycle or series of activities, often related to improvement, innovation, or development within a business context.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance costs.

Variable Costs

Expenses that change in proportion to the volume of goods or services a company produces, such as materials and labor costs.

Primary Management Function

The core activities central to managing an organization, often categorized as planning, organizing, leading, and controlling.