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KIM [24]
3 years ago
9

Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure fro

m investors to increase earnings, and the president of the expects the Accounting Department to "make this happen". Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated. Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get "caught up" on shrinkage in the next period, after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him.
Required:
What should Margie do in this situation? Why?​
Business
1 answer:
QveST [7]3 years ago
7 0

Answer and Explanation:

1. Margie Johnson would be ethically wrong if she grants the boss's favour to not report inventory shrinkage. Also financial statements would not show a true and fair view if she decides to follow what her boss is asking. She should report true inventory value in financial statements.

2. Yes Ryan is being professional since he is out to improve company's sales and income even though he may be putting pressure on employees to work overtime

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It could also mean an organization whose operation is not confined to a particular location or the confine of their office complex.

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3 0
3 years ago
The elasticity of supply measures how responsive:
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Answer:

the quantity supplied is to a change in price. 

Explanation:

Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price

Elasticity of supply = percentage change in quantity supplied/ percentage change in price

Supply is elastic if a small change in price has a greater effect on the quantity supplied.

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Supply is unit elastic if a small change in price has a proportional equal effect on quantity supplied.

I hope my answer helps you

8 0
3 years ago
What effects did the Embargo Act of 1807 have on American industry? increased international competition forced U.S. to become mo
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Answer:

forced U.S. to become more self-reliant

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4 0
2 years ago
Read 2 more answers
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Answer:

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<u>Answer:</u>

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