User Account

All Pages

What are the ethical considerations in the given case

Assignment Help Other Subject
Reference no: EM132102673

Question: Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting.

Instructions: • Read the following scenario.

• Answer the questions that follow. Your answers should result in a 2-3 page submission.

• Reference back to your text book for guidance on how to think through the scenario.

Scenario: Imagine you are the assistant controller in charge of general ledger accounting at Linbarger Company. Your company has a large loan from an insurance company. The loan agreement requires that the company's cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000. You give this update to Lisa Infante, the financial vice president. Lisa is nervous and instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, "If we don't get that cash balance over $200,000, we'll default on our loan agreement. They could close us down, put us all out of our jobs!" Lisa continues, "I talked to Oconto Distributors (one of Linbarger's largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we'll be in the clear. It's in the mail!"

1. What is the accounting problem that the Linbarger Company faces?

2. What are the ethical considerations in this case? Provide rationale for why these are ethical considerations.

3. What are the negative impacts that can happen if you do not follow Lisa Infante's instructions to wait one more day to post the balance?

4. Who will be negatively impacted if you do comply? Provide a rationale for why these individuals will be impacted.

5. What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.

Reference no: EM132102673

Questions Cloud

Diversification and innovation about four market segments : Case Study about Navistar Interntaional Corporation (NAV) expansion, diversification and innovation about their four market segments such as trucks,
Effective planning is essential for any marketing activity : Effective planning is essential for any marketing activity to ensure that an organisation realizes its marketing objectives.
How an increase in interest rates may impact the scenario : Create a scenario where an investor would benefit from using forward and future contracts to hedge an existing risk exposure.
What are the possible solutions : What are some of the more common challenges or problems encountered by the firm in this regard, and what are the possible solutions?
What are the ethical considerations in the given case : Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation.
Advertsment for city houston : Advertsment for city Houston - memorable slogan - a map that shows where Houston is located in Texas - Any other creative touches by the writer to make
Define ethnocentrism and cultural relativism : Define ethnocentrism and cultural relativism. Should we ever try to stimulate change? Discuss proactive approach to change.
Discuss the areas that are pertinent to chosen organisation : Critically analyse whether the author is justified in arguing that performance ratings should not be fully eliminated?
Through the process of making sound ethical decision : Explain how you went through the process of making a sound ethical decision.

Reviews

Write a Review

Other Subject Questions & Answers

  Asymmetric information

Explain what is meant by "asymmetric information." Identify and explain the two basic types of problems that arise when there is asymmetric information.

  Describe the philosophy of the broken window

In you own words, 200 to 300 words Describe the philosophy of the broken window approach to the operation of probation

  Review two to three news articles to determine a local

review two to three news articles to determine a local community health care issue. examples include swine flu asthma

  What is the underlying pathological process

CH is a sixty-three-year-old man who has had emphysema problems for many years. History: He smoked for twenty years before quitting. The nurse meets CH for the first time. In performing a physical assessment, the healthcare provider would expect CH t..

  What does this emphasis reveal about the nature of courage

The author emphasizes the thoughts of Gilgamesh and Enkidu as they travel to meet Humbaba, What does this emphasis reveal about the nature of courage

  Can you identify in contemporary culture and government

What, according to H. Gene Blocker, are the most important historical sources for our contemporary conception of human rights?To what extent, if at all, can you identify in contemporary culture and government specific legacies of any of the ancient..

  Explain the challenges presented by boundary issues

Write a 300 to 400-word paper based on your selected scenario in which you examine the concept of dual relationships. As part of your examination, address the following items: with reference, Explain the challenges presented by boundary issues in p..

  Create a research or term paper

Paper must have at least five scholarly (peer reviewed) sources, four of those from past two years. After you have fulfilled scholarly article criteria, you may use or sources you find applicable, but se or sources, especially Web sources, should ..

  Survey of recent college graduates

A 2003 survey of recent college graduates in the United Kingdom found that although many had not found their first jobs, most were already planning "career breaks" and to keep up their hobbies and interests outside work.  As one report of the find..

  Alignment of perceptions with influence of society

The Statement is: I've heard that the stronger the influence of society regarding certain issues, the more likely our perceptions will be in alignment with viewpoints of society as a whole.

  Explain how the use of different technology tools easier

Discuss any ethical, legal, and security implications of using technology to create and share numerical data.

  Discuss the assumptions of the characters in a film

Describe the specific assumptions or beliefs the characters have in the beginning of the film - write about and answer questions about the films characters

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd