Sam Jones, Controller of Mitnikco, Spends Three Days Researching the Accounting

question 102

Multiple Choice

Sam Jones, controller of Mitnikco, spends three days researching the accounting statements to find loopholes in the "rules" and to make a case for recognizing revenue earlier, rather than in later years. In the end, Sam and the other members of management determine that they will reduce the company's deferred revenue accounts and begin accounting for all revenues as agreements are signed. What are the motivations of Mitnikco management based solely on the information above?

• A) Pressures.
• B) Opportunity.
• C) Rationalization.
• D) Skepticism.

---

Definitions:

Liberty

The condition of having freedom in society from authoritarian-imposed limitations on one's lifestyle, actions, or political beliefs.

Prevent Harm

Efforts or actions taken to avoid damage, injury, or negative outcomes.

Moral Concerns

Issues or situations that pertain to principles of right and wrong behavior and the goodness or badness of human character.

Journalism

Journalism is the practice of gathering, assessing, creating, and presenting news and information for various media to inform the public.