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bulgar [2K]
3 years ago
8

You have recently been hired as the assistant controller for Stanton Industries. Your immediate superior is the controller who,

in turn, reports to the vice president of finance. The controller has assigned you the task of preparing the year-end adjustments. For receivables, you have prepared an aging of accounts receivable and have applied historical percentages to the balances of each of the age categories. The analysis indicates that an appropriate balance for Allowance for Uncollectible Accounts is $180,000. The existing balance in the allowance account prior to any adjustment is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new aging category. This will change the required allowance for uncollectible accounts from $180,000 to $135,000. Tactfully, you ask the controller for an explanation for the change and he tells you, "We need the extra income; the bottom line is too low."
Required:
1. What is the effect on income before taxes of the change requested by the controller?
2. Discuss the ethical dilemma you face. Consider your options and responsibilities along with the possible consequences of any action you might take.
Business
1 answer:
Nata [24]3 years ago
5 0

Answer:

Answer is given below.

Explanation:

it is absolutely exploitative to adjust the maturing of the records receivable with no legitimate explanation so as to diminish the remittance made so as to expand the benefit and show an off base monetary record figures to the partners. The controller can't subjectively choose to change the records receivable to cut down the noncollectable records as at some point or another a similar will be found during review and a similar will be hailed off as a fake. The long haul results you would confront incorporate landing terminated from the position, having your authorized dropped in the event that you are CPA and may likewise confront lawful prosecutions. You should disclose to the controller that so as to simply introduce a decent benefit for the present year it can place into the danger for the future and put their vocation in question. Additionally, a similar won't be valued by the investors and the organization may go on free its altruism.

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Margarita [4]

Answer:

a) 75600.

Explanation:

Given;

Beginning Work in Process =  19900  

Ending Work in Process = 65300

Units Transferred Out Units = 30200

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19900 - 30200 + x = 65300

x = 65300 - 19900 + 30200

x = 75,600

4 0
3 years ago
economists argue that rent control is a highly efficient way to help the poor raise their standard of living.
mote1985 [20]

Economists argue that rent control is a highly efficient way to help the poor raise their standard of living. The statement is False.

<h3>What is Economists?</h3>

An economist refers an individual who possesses deep knowledge about the connection between the production that takes place with the help of resources and the output received to determine the growth.

Rent control is a highly efficient way to help the poor raise their standard of living is False. The quantity of legal rise would be limited by rent control, and most landlords support these rules.

Therefore, the statement is False.

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economists argue that rent control is a highly efficient way to help the poor raise their standard of living. True/False.

5 0
2 years ago
ATech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year ear
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Answer: Degree of Operating Leverage

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Z Tech = 3

Explanation:

As defined in question itself,

Degree of Operating Leverage = 1 + \frac{fixed\ cost}{Profit}

As here, it is provided that profit for both the companies are same amounting $4 million.

Although the fixed cost differ by $1 million.

A Tech Degree of operating Leverage = 1 + \frac{7,000,000}{4,000,000} = 2.75

Z Tech Degree of Operating Leverage = 1 + \frac{8,000,000}{4,000,000} = 3

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Today, weekly box office revenues are usually considered Friday-Thursday, reflecting the fact that most movies are officially released on Friday in the United States. Variety was published every Wednesday for many years, so most of the weekly box office revenue they reported in the 1920s-1990s was from Thursday-Wednesday.

Most of the Weekly Loss is weekend cashiers. Historically, this has been reported as box office revenue from Friday to Sunday, and holidays close to weekends. Day numbers from Friday to Sunday are also now used.

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5 0
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