The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect. Identify the stakeholders in this situation.

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Answer 1

Question

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the possible action of Mr. S.

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At the beginning of the year, Crane Ltd. had total assets of $710,000 and total liabilities of $400,000. If Crane's total assets decreased by $90,000 during the year and shareholders' equity increased by $125,000, what is the amount of total liabilities at the end of the year?

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Answer 2

Question

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the possible action of Mr. S.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the possible action of Mr. S.

Expert Solution & Answer

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Answer 4

Question

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the possible action of Mr. S.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

b)

To determine

Identify the ethical considerations in this situation.

c)

To determine

Identify the possible action of Mr. S.

Answer 6

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

Answer 7

Chapter 18, Problem 6EYCT

a)

To determine

Case Summary:

The case is related to the error in projection presented by accountant, which leads to major changes in the company, after few months sale is beyond projection which offsets the mistake of accountant. In this case, accountant of W Company made a projection based on past profits of the company. The projection was presented and approved by the senior management and changes in production area and plants have been made. After few months accountant rechecked his projection and found his mistake, which is not known by any one. Now, whether the accountant confesses his mistake and informs the stakeholder that the profits made by the W Company are material as projections made are incorrect.

Identify the stakeholders in this situation.

Answer 8

b)

To determine

Identify the ethical considerations in this situation.

Answer 9

b)

To determine

Identify the ethical considerations in this situation.

Answer 10

c)

To determine

Identify the possible action of Mr. S.

Answer 11

c)

To determine

Identify the possible action of Mr. S.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 18 - Prob. 1Q Ch. 18 - Prob. 2Q Ch. 18 - Prob. 3Q Ch. 18 - Prob. 4Q Ch. 18 - Prob. 5Q Ch. 18 - Prob. 6Q Ch. 18 - Prob. 7Q Ch. 18 - Prob. 8Q Ch. 18 - Prob. 9Q Ch. 18 - Prob. 10Q

Identify the ethical considerations in this situation.

Identify the possible action of Mr. S.

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Chapter 18 Solutions