What is the ethical issue

Assignment Help Accounting Basics
Reference no: EM132044843

Question - Raffie's Kids, a nonprofit organization that provides aid to victims of domestic violence, low-income families, and special-needs children, has a 30-year, 5% mortgage on the existing building. The mortgage requires monthly payments of $3,000. Raffie's bookkeeper is preparing financial statements for the board and, in doing so, lists the mortgage balance of $287,000 under current liabilities because the board hopes to be able to pay the mortgage off in full next year. Of the mortgage principal, $20,000 will be paid next year if Raffie's pays according to the mortgage agreement. The board members call you, their trusted CPA, to advise the on how Raffie's Kids should report the mortgage on its balance sheet. What is the ethical issue? Provide your recommendation and discuss the reason for your recommendation.

Reference no: EM132044843

Questions Cloud

Develop a schedule for hiring new employees : 1. Using QM for Windows. Develop a schedule for hiring new employees. What is the total cost of this schedule?
Reliable electric is regulated public utility : Reliable Electric is a regulated public utility, and it is expected to provide steady dividend growth of 5% per year for the indefinite future.
Undertaking a lengthy and expensive course : If a member of a team had created a learning and development plan for themselves that involved undertaking a lengthy and expensive course
Shares of common stock outstanding : What would its book value per share be if the firm had 25,000 shares of common stock outstanding?
What is the ethical issue : The board members call you, their trusted CPA, to advise the on how Raffie's Kids should report the mortgage on its balance sheet. What is the ethical issue
Calculate the opportunity cost of capital : Suppose investors believe the stock will sell for $71 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy?
Calculate the total variance for production labor : Frasco Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. Calculate the total variance for production labor
Define three types of stressors that can impact : Analyze the safety implications that a workspace environment within a fleet vehicle present to the driver.
Analyzes the role of the social worker : Submit a 2- to 3- APA page paper that analyzes the role of the social worker in helping to plan end-of-life care. Include possible consideration of palliative.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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