1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vadim26 [7]
3 years ago
6

On January 20, 2017, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial

statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton's obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company's performance and financial position for the fiscal period ended December 31, 2016. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.
Required:
1. Identify several courses of action that Tamira could have taken instead of the one she took.
2. If you were in Tamira's situation, what would you have done?
Business
1 answer:
Nataliya [291]3 years ago
3 0

Answer:

this case tells us about some sort of pressures that accounts feel when financial statements are needed urgently

Explanation:

1) As for using low estimates, this step was wrong on her part. she should have been upfront in her estimates. for the items that she could not estimate there should have been an indication that such items were still under review, instead of doing what she did to give the financial estimate a good look. Using guesses or deliberately using low estimates was a bad idea, GAAP would never condone that.

She should have met with the president and let him know that finalization of the financial statements would not possible within the time frame that he has given. She could have also explain that such delays are normal and she would have given estimates of when the draft internal copy would be made available to him. such steps she took could have resulted in serious consequences for the company

2) I would not inflate or deflate the figures on purpose to make financial statements look better. If it is time to present the draft and final year-end financial statements I will have to tell the truth on the numbers and estimations used and also the reasons for that. i would have explained the constraints that i was facing. if i was still being pressurized by the president,  i would have no choice than to call it quits instead of going against the ethics of my profession, since there are both ethical and legal implications to not giving inaccurate financial statements.

You might be interested in
Growth stocks:
crimeas [40]

option d. is the right option

7 0
3 years ago
Mark accidentally overheard a confidential phone conversation between his boss and the district manager during which they discus
EleoNora [17]

Answer:

-Say nothing to his co-workers since this was a private conversation and he could lose his job if his boss found out he was spreading sensitive company information

Explanation:

Since in the situation it is mentioned that Mark accidentally heard a confidential phone conversation in which the possibility of layoff in the sales division would be discussed he is not in danger but some of his friends are the sales representatives so mark would not tell anyone as it is a private conversation and he could lose the job if the boss knows that the information is spread by mark

Therefore the second option is correct

5 0
3 years ago
Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the e
lawyer [7]

Answer:

Return on company's stock = 15.6%

Explanation:

<u><em>The capital asset pricing model (CAPM)</em></u><em> relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c</em>

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 6%, Rm- 14%, β- 1.2

E(r)  = 6% + 1.2× (14- 6)%

        = 6%  + 9.6%

         = 15.6%

Return on company's stock = 15.6%

7 0
3 years ago
John owns a second home in Palm Springs, California. During the year he rented the home for $4,000 for 36 days and used the hous
tekilochka [14]

Answer:

Option (C) is correct.

Explanation:

Total expenses:

= mortgage interest + property tax + utilities and maintenance + Depreciation expense

= $5,000 + $600 +  $900 + $3,500

= $10,000

Proportionate rental expenses = Total expenses × \frac{36\ days}{(36 + 14) days}

Proportionate rental expenses = 10,000 × \frac{36\ days}{(36 + 14) days}

= $7,200

Rental Loss = Rental Income - Proportionate rental expenses

                   = $4,000 - $7,200

                   = -($3,200)

7 0
3 years ago
XYZ Company received $18,000 on April 1, 2020 for one year's rent in advance and recorded the transaction with a credit to a nom
djverab [1.8K]

Answer:

Dr Rent revenue

Cr Unearned rent revenue, $4,500

Explanation:

Preparation of XYZ Company Journal entry

Since we were told that the Company received the amount of $18,000 on April 1, 2020 for a one year's rent paid in advance in which the transaction has a credit to a nominal account, this means we have to record the transaction by Debiting Rent revenue with 4,500 and Crediting Unearned rent revenue, with the same amount of $4,500 calculated as

(3/12 x $18,000 ).

Dr Rent revenue

Cr Unearned rent revenue, $4,500

(3/12 x $18,000 )

7 0
3 years ago
Other questions:
  • Meria Het, a footwear company, designs formal and casual footwear for White American women. However, to increase its customer ba
    8·1 answer
  • At specific mileage intervals, Capitol sends certificates to owners of their automobiles offering discounts on repair services t
    7·1 answer
  • Avi sells paint to shops that repair wrecked vehicles. when avi called on elwood body shop, he wanted to sell the body shop owne
    15·1 answer
  • Booker Petroleum Refiners (BPR) has an issue of 8-year, 11% annual coupon bonds outstanding. The bonds, which were originally is
    15·1 answer
  • Economists who believe in sound finance would say that in a recession, the government should:
    9·1 answer
  • Q: Research topic: CORONA-19: Asian stock markets and vaccine hopes
    6·1 answer
  • What are the possible consequences of making a late payment?
    6·1 answer
  • Which answer applies to "fine print"?
    11·1 answer
  • 13
    14·1 answer
  • What is the promissory note???​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!