A Member of a Corporation's Accounting Staff Has Determined That

question 32

Essay

A member of a corporation's accounting staff has determined that the CEO intentionally has recognized company revenues on certain sales contracts during the current year,even though these sales contracts do not involve the delivery of goods or services until next year.This accounting staff member is considering becoming a whistleblower.
a. From the standpoint of deontology, what factors should this accountant consider?
b. From the standpoint of consequentialism, what factors should this accountant consider?

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Definitions:

Cash Dividends

are profit distributions made by a corporation to its stockholders in the form of cash.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period of time.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, not when they are incurred.