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-Dominant- [34]
3 years ago
5

Sarah, the controller of a large beverage supplier, supervises two employees. Her boss, Vladimir, instructs her to increase the

company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts. She does not understand why he wants her to make these entries but immediately directs one of her staff to make them because she has been instructed to do so. Which of the following statements best describes Sarah's actions?
A. Sarah failed to evaluate a potential ethical issue.
B. Sarah failed to refer the matter to the AICPA ethics hotline.
C. Sarah failed to ensure that her staff was competent to make the entries.
D. Sarah failed to consider the rules of other regulators.
Business
1 answer:
Verizon [17]3 years ago
4 0

Answer: Sarah failed to evaluate a potential ethical issue.

Explanation:

From the question, we are informed that Sarah who is the controller of a large beverage supplier, supervises two employees and that her boss, Vladimir, told her to increase the company's inventory balance for an amount that is material to the financial statements by crediting several small "miscellaneous" expense accounts.

We are further told that Sarah does not know the reason behind this but told one of her staff to make them because she has been instructed to do so.

We can see that Sarah failed to evaluate a potential ethical issue. She didn't evaluate the effect of what she is doing. In this case, what her boss told her to do could be a case of fraud and she just obliged without asking questions which will put her conscience at ease in case anything happens but the fact that she just did it without asking questions or thinking if what she has done is morally right or wrong, it shows that Sarah failed to evaluate a potential ethical issue.

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Mario and Johnny want to start a business. They have very little capital. They are new partners and largely unfamiliar with each
Anettt [7]

Answer:

Third sentence

Explanation:

Even though they have little capital and new business partners it states in the third sentence that the two are happy to be organizing a business together to avoid liability. So if they take the time to learn about each other and to find each others strengths and weaknesses they will be able to work together and become a stronger team.

Hope this helps.

7 0
3 years ago
Brown Fashions Inc.'s December 31, 2018 balance sheet showed total common equity of $4,050,000 and 165,000 shares of stock outst
dedylja [7]

Answer:

$26.67

Explanation:

Total Common Equity New = Total Common Equity Old + Net Income -Dividends Paid

Total Common Equity New = $4,050,000 + $450,000 - $100,000

Total Common Equity New = $4,400,000

Book value per share = Total Common Equity / Shares Outstanding

Book value per share = $4,400,000 / 165,000 shares

Book value per share = 26.66666666666667

Book value per share = $26.67

4 0
3 years ago
Emma's property is assessed at $650,000. her property qualified for a $50,000 homestead tax exemption and was appraised at $800,
Rama09 [41]
Emma's taxable property value should be $600,000 since her taxes will be based on the assessment not the appraisal and also because she gets the $50,000 tax reduction so therefore to reiterate she will be taxed on only the $600,000.
6 0
3 years ago
Which of the following statements is true of pricing strategy? Avoid sale prices as they lead to price wars. An entrepreneur's f
yawa3891 [41]

Answer:

Most consumers decide on a product using price as the number one factor

Explanation:

Sale prices could make a market more competitive and it is also a pricing strategy.

If an entrepreneur set the price as high as s/he thinks s/he can it could take her/him out of competition in the market and it would leave her/him without profit.

Small business don't set their prices according to their business size but to the economic factor, because consumers first decide based on the economic factor because people can't buy what they can't afford.

8 0
4 years ago
Jacob and Marla were both presented with a complex accounting issue that neither had seen before. Marla was able to look at the
devlian [24]

Answer: Generally, when trying to solve a complex accounting problem in which there are obstacles and little knowledge about the subject, the most advisable thing is to work from a conceptual framework which serves as a guide to find a reasonable answer to the problem in question. In this case Marla was clearly working with a conceptual framework, and instead Jacob was not.

4 0
3 years ago
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