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
ipn [44]
3 years ago
14

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 actionsa)Sarah failed to evaluate a potenTal ethical issueb)Sarah failed to refer the ma²er to the AICPA ethics hotlinec)Sarah failed to ensure that her stu± was competent to make the entriesd)Sarah failed to consider the rules of the regulators
Business
1 answer:
DerKrebs [107]3 years ago
5 0

Answer:

a) Sarah failed to evaluate a potential ethical issue

Explanation:

A financial fraud refers to misrepresentation of financial data by inflating or reducing a figure amount with the motive to deceive the users of the financial statements and thereby depict better financial position and state of affairs.

The above concept is also referred to as window dressing of accounts.

In the given case, the purpose behind increasing the value of inventory and creation of miscellaneous expense account is to depict fake financial picture. With an increase in the inventory balance, the profits would be inflated. Crediting miscellaneous expenses again would reduce expenses balances and further inflate the profits.

Thus, Sarah failed to evaluate a potential ethical issue when she blindly directed her staff to incorporate such changes.

You might be interested in
John works for Heinlein Hillclimbers in Wyoming, where he earns $26,500 annually. He contributes $150 per month to his 401(k), o
otez555 [7]

Answer: $40,710

Explanation:

John's annual compensation includes his actual annual salary as well as the various payments that Heinlein Hillclimbers makes on his behalf.

His total annual compensation is:

= Annual salary + Employer's 401 contribution + Health insurance + Life insurance + AD&D + Profit sharing bonus + Tuition reimbursement + employer only taxes and insurance

= 26,500 + (150 /2 * 12 months) + (150 * 12 months) + (30 * 12 months ) + (50 * 12 months ) + (2% * 26,500) + 5,250 + (18% * 26,500)

= 26,500 + 900 + 1,800 + 360 + 600 + 530 + 5,250 + 4,770

= $40,710

4 0
2 years ago
A photocopier cost $105,000 when new and has accumulated depreciation of $96,000. if the business discards this plant asset, the
Ahat [919]

A photocopier cost $105,000 when new and has accumulated depreciation of $96,000. if the business discards this plant asset, the result is a loss of 9,000.

During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period. Amortization of assets with predetermined useful lives is included in depreciation. Depreciation enables businesses to recoup the cost of an item at the time of acquisition. Instead of collecting the full cost of an asset right away, the technique enables businesses to do so during the asset's lifecycle. This enables businesses to replace current assets with the necessary quantity of revenue in the future.

Subtract the asset's cost from its salvage value (what you anticipate it to be worth at the end of its useful life) to determine depreciation using the straight-line technique. The outcome is the amount or depreciable basis.

Depreciation = asset's cost - salvage value

Depreciation = $105,000 - $96,000

Depreciation = $9,000

To know more about Depreciation refer to:  brainly.com/question/15085226

#SPJ4

4 0
1 year ago
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to imp
nevsk [136]
The answer to this question is the term Value delivery network. A Value delivery network is a system that is made up of the participants like the company, suppliers, distributors that are all involved in the marketing, distributing, production, and even the customer service of the goods and services in a specific or geographic area / market. This team partners together for a common goal, to provide good service.
4 0
3 years ago
TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc
alexandr402 [8]

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = \frac{45,000}{2,500} = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

8 0
3 years ago
PLEASE HELP! IN A TEST! A salesperson may sell from a distance except when it involves _____.
julia-pushkina [17]

Answer: B.) Contacting people who have opted out of receiving sales messages

Explanation:

A p E x

8 0
3 years ago
Other questions:
  • If a firm shuts​ down, it A. will earn enough revenue to cover its variable costs but not all of its fixed costs. B. will produc
    12·1 answer
  • Your firm is contemplating the purchase of a new $684,500 computer-based order entry system. The system will be depreciated stra
    8·1 answer
  • Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood an
    5·1 answer
  • Attempts to build exporting opportunities abroad through better relationships with other countries is called protectionism.
    5·1 answer
  • rayer Corporation has income from continuing operations of $319,000 for the year ended December 31, 2017. It also has the follow
    6·1 answer
  • When an asset is sold, a gain occurs when the:______.
    14·1 answer
  • Which of the following is a nominal variable? - Education - Age - Employment status - One needs to know the attributes to determ
    5·1 answer
  • The ________ type of recruitment strategy uses physical and/or psychological pressure on potential members and threatens that ei
    7·1 answer
  • A. You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type
    6·1 answer
  • One of the main factors when determining which companies to buy policies from is whether or not the company is _____ strong.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!