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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.

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Mrs. Beld sold marketable securities with a $79,600 tax basis to her daughter for $60,000 cash. Two years later, the daughter so
Ksenya-84 [330]

Answer:

$13,400

Explanation:

Data provided in the question:

Tax basis of marketable securities = $79,600

Amount for which securities sold to daughter = $60,000

Amount for which daughter sold the  securities = $93,000

Now,

Mrs. Beld disallowed loss on the related party sale to her daughter

= Tax basis of marketable securities - Amount for which securities sold to daughter

= $79,600 - $60,000

= $19,600

Realized gain by her daughter = $93,000 - $60,000

= $33,000

Therefore,

The daughter's gain recognized on sale

= Realized gain by her daughter - Mrs. Beld disallowed loss

= $33,000 - $19,600

= $13,400

8 0
3 years ago
Identify and explainthe benefits and problems associated with high economic growth
frozen [14]

Answer:

Kindly check explanation

Explanation:

High economic growth is usually the aim of several economic policies whichnmost countries try to employ. The reason for this is no other than the numerous benefits attached to it which includes;

Increase in GDP : With growth in the economy of a country, trading within and outside these countries will rise, leading to increase in revenue earned and hence, the gross domestic product. This will pave the way for :

Infrastructural development : The development of infrastructure and standard society will be on the horizon as the economy grows. There is enough capital to embark on infrastructural development which will serve the populees

Other benefits include ; Trade and investment opportunities ; Increase in foreign direct investment and employment level will increase.

High economic growth also has it's drawbacks which include ;

Higj Immigration level ; Businesses and individuals are always on the lookout for areas with good investment opportunity in which an high income society is usually a main target. With increasing immigration, overcrowding may result.

Also, Investment cost may begin to rise, coupled with increase in foreign investment influx, the local market may be at risk of being able to compete.

5 0
3 years ago
When corruption is evident in governments the result is that
valentinak56 [21]

Answer: Industries have more difficulty opening since they will have to resort to bribes from government people.

Explanation: When corruption is very marked in a country, many people know that the way to obtain benefits is through certain bribes. In the case of industries, in order for them to open they have to resort to bribes made by government personnel to have the opportunity for their construction to take place.

8 0
3 years ago
At Nanclet, a market research firm, whenever a particular team needs to hire people, the human resource (HR) department conducts
Tju [1.3M]

Answer: Structure interview

Explanation:

A structured interview is a form of interview used by an organization in order to ensure that each interview is presented to each candidate with exactly the same questions and also in the same order.

It is a standardized way of interviewing the candidates for a job based on the particular needs of the job the candidates applied for. The candidates are asked same questions irrespective of their qualifications or experience.

5 0
3 years ago
What should you do to elicit the most useful data in your interviews? Ask primarily yes-or-no questions. Ask leading and ambiguo
grin007 [14]

Answer:

Make your questions objective and friendly.

Explanation:

An interview is an essential step in the process of selecting a candidate to fill a position in a company.

Through the interview, verbal and non-verbal data are collected that will help in the relationship between the profile of the interviewed candidate and the profile expected to fill the vacancy.

It is important that the interviewer uses some techniques to make the interview flow effectively, the first of which is to maintain a friendly posture, as it is common for candidates for an interview to feel intimidated or anxious due to the selection process.

It is also essential that the questions are objective and honest, so that there is a correct understanding and the candidate can answer correctly and effectively.

And the interview should be a step that does not cause intimidation and lack of ethics on both sides, it is ideal that the candidate feels motivated to ask relevant questions to answer their doubts, and that the interviewer conducts the interview schedule in an effective way.

5 0
3 years ago
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