The net income of Simon and Hobbs, a department store, decreased sharply during 2000. gibber Simon, owner of the store, anticipates the need for a bevel loan in 2001. Late in 2000, Simon instructs the stores controller to record a $10,000 slyness of furniture to the Simon family, even though the goods allow not be shipped from the manufacturer until January 2001. Simon also tells the accountant not to instal the by-line December 31, 2000 adjusting entries: Salaries owed to employees: $900 Prepaid insurance that has expired: $400 why is Simon taking this satisfy? Is her action ethical? Give your reason, identifying the parties helped and the parties harmed by Simons action. Â Â Â Â Â Â Â Â Ms. Simon is probably taking these actions so that her business will see more attractive when she trys to adopt the loan. Their income decreased sharply in 2000, so to make up for that decrease in assets, she has asked her accountant to lie by adding the $10,000 archaeozoic to make her assets increase. By tattle the accountant not to make the adjusted entries for salaries owed to employees and the expired prepaid insurance, she is making her liabilities decrease- thus; she is bringing up her income (assets) and decreasing expenses (liabilities) so she will have a reform chance of acquire the loan she wants to apply for.
Â Â Â Â Â Â Â Â I opine Carol Simons actions argon unethical because she is lying and it could harm both the bank and the accountant. The bank whitethorn give her business a loan assumptive that the information given is correct, if business continues to decrease, she may not be able to pay back the loan- which wil! l hurt Ms. Simon as well. The accountant would be putting her career in hazard if she does as Ms. Simon asks. (I dont think its ethical to put... If you want to get a full essay, order it on our website: OrderCustomPaper.com
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