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Free_Kalibri [48]
3 years ago
5

The controller of Diaz Co. believes that the yearly allowance for doubtful accounts for Diaz Co. should be 2% of net credit sale

s. The president of Diaz Co., nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which reflects a 6% growth rate, will be a more sustainable rate for Diaz Co.
Instructions

(a) Who are the stakeholders in this case?

(b) Does the president's request pose an ethical dilemma for the controller?

(c) Should the controller be concerned with Diaz Co.'s growth rate? Explain your answer.
Business
1 answer:
pickupchik [31]3 years ago
6 0

Answer:

The answer is given below.

Explanation:

A) - In the following case, the stakeholders seem to be the chairman of that company, the Controller of that company. The Stockholders as well as all the other group that has an interest in the organization's balance sheet, including an investment manager or even a banker seeking to give cash.

B) - Yes, the appeal of the chairman raises the legal issues for such a manager. Due to confusing income reports as suggested by the chairman, the operator poses a moral issue. In the viewpoint, for safeguard the interests of big business and not to confuse customers by representing wrong net profits, the manager will be guided. Required to disclose correct net profit that, on effect, influences their rate of growth ratio. Aggregate-income growth gives a clear view of the pace where the businesses also raised their earnings. All others remaining identical, shares having stronger net profit rates of growth are much more attractive as compared to others.

C) - Yes, of course, the manager will be worried about the rate of growth of that company due to the rate of growth that should be focused upon rational as well as reliable income reports. The manager does not file income reports for the chairman's goal of meeting or retaining the defined rate of growth. The following inflation rate would be focused upon operational and financial performance, not on some distorted financial reporting.

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Answer:

The answer is $0.

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So in this question, the work from the volunteers and the film from CPA can be all accounted for contributed service revenue.

If we calculate them;

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I hope this answer helps.

8 0
4 years ago
When there is no government involvement in answering the three basic economic questions this is which economy?
Dmitry_Shevchenko [17]

When there is no government involvement in answering the three basic economic questions this is Market Economy.

Market

<u>Explanation:</u>

When there is no government interventions in the market system or economy then it is known as Market Economy or Lassez faire.

Here the firms and household determine who sells the goods and who buys it and everything is carried out according to them and there is no government intervention like that of the command economy.

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6 0
4 years ago
A perfectly competitive firm will hire workers up to the quantity at which the wage rate equals the:_________.
Lina20 [59]

Answer:

marginal revenue product.

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A perfectly competitive firm will hire workers up to the quantity at which marginal cost of labor equals marginal revenue

7 0
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Olenka [21]

Answer: d. dependability

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Can the Customer depend on you?

Can the Customer expect your services to be on time, reliable, efficient and consistent?

These are Dependability questions and the more of them a firm answers Positively, the higher the Customer Satisfaction.

Being consistent in lead time, with goods that arrive safely, and are complete is therefore a measure of DEPENDABILITY.

8 0
3 years ago
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Sauron [17]

Answer: length- roads, yard stick, square footage in a room

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