Recruited for the senior accountant position

Assignment Help Financial Accounting

Reference no: EM131202438

This was Joel Craig's first visit to the controller's corner office since being recruited for the senior accountant position in May. Because he'd been directed to bring with him his preliminary report on year-end adjustments, Craig presumed he'd done something wrong in preparing the report. That he had not was Craig's first surprise. His second surprise was his boss's request to reconsider one of the estimated expenses. S & G Fasteners was a new company, specializing in plastic industrial fasteners. All products carry a generous long-term warranty against manufacturer's defects. "Don't you think 4% of sales is a little high for our warranty expense estimate?" his boss wondered. "After all, we're new at this. We have little experience with product introductions. I just got off the phone with Blanchard (the company president). He thinks we'll have trouble renewing our credit line with the profits we're projecting. The pressure's on.

1) Should Craig follow his boss's suggestion? Why or Why not.

2) Does revising the warranty estimate pose an ethical dilemma? Explain.

3) Who would be affected if the suggestion is followed?

Reference no: EM131202438

Questions Cloud

Periodic inventory system and perpetual inventory system : Journalize the following transactions for Armour Inc. using both the periodic inventory system and the perpetual inventory system, presented in a side-by-side format shown at the end of this exercise. Sold merchandise on credit to Rondo Distributors,..

How the strategy maximizes the amount of transferred wealth : You are an associate in a boutique tax consulting firm that specializes in the real estate industry. Consider how the strategy maximizes the amount of transferred wealth to the client's children over time and explain the amount in an Excel spreadsh..

Write a description of the aim of the gieven sports science : Write a description of the aim of the following. - Phase two of training is associated with gaining maximum strength of the basketball player.

Identify 1 subpopulation of southeastern united states : How do departments of health on the state and the local level contribute to the maintenance and management of public health? Are public health agencies on the federal, state and local level successful in ensuring that public health is maintained?

Recruited for the senior accountant position : This was Joel Craig's first visit to the controller's corner office since being recruited for the senior accountant position in May. Because he'd been directed to bring with him his preliminary report on year-end adjustments, Craig presumed he'd done..

Why financial accounting standards board : Determine the fundamental reasons why Financial Accounting Standards Board (FASB) requires a company to use the equity method of accounting for investments. Next, propose two (2) theoretical problems of recognizing equity income that the opponents of..

Compute equivalent units : In Department C, materials are added at the beginning o f the process. There were 1,000 units in beginning inventory, 10,000 units were started during the month, and 7,000 units were completed and transferred to finished goods inventory. Under the av..

How each would be used when conducting research : Discuss these methods and give one example of how each would be used when conducting research using homeless individuals as subjects. Analyze regulatory, accreditation, ethical, and legal issues and challenges related to each research method.

Powerpoint presentation on disaster recovery plan : A written paper and a PowerPoint presentation on Disaster Recovery Plan.- Provide an overview of the organization that will be delivered to senior management.

User Account

All Pages