Tommy Hubbs Is the Controller of XYZ Corporation

question 51

Essay

Tommy Hubbs is the controller of XYZ Corporation. Recently, Hubbs was approached by Carol Franks, the CFO, and told in no uncertain terms to record $100,000 in revenue at the end of 2013 even though the sale was not made until January 3, 2014. Describe Hubbs's ethical responsibilities in this matter if he is a CPA?

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Definitions:

State-Dependent Retrieval

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.

Biological State

A term referring to the condition or status of an organism's functioning at the biological level, encompassing aspects like metabolism, hormone levels, and overall health.

Encoded

The process of converting information into a particular form for efficient communication, storage, or processing.

Short-Term Memory

A capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.