Ethical Case Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover. To Determine: The stakeholders in this situation.

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Answer 1

Question

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

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Answer 2

Question

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

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Answer 4

Question

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

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Answer 5

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

Answer 6

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

Answer 7

Chapter 4, Problem 4.8EYCT

(a)

To determine

Ethical Case

Case Summary: Company W’s sales declines heavily due to ban on some pesticides it produces for environmental reasons. The president of Company W urged the controller T to accrue, every possible revenue and defer as many expenses as possible, by making year end adjusting entries and make the company profitable in the current year, so that its stock price would not come down and it make it a candidate for takeover.

To Determine: The stakeholders in this situation.

Answer 8

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

Answer 9

(b)

To determine

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

Answer 10

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

Answer 11

(c)

To determine

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 4 - Prob. 1Q Ch. 4 - Identify and stale two generally accepted...Ch. 4 - Prob. 3Q Ch. 4 - Prob. 4Q Ch. 4 - Prob. 5Q Ch. 4 - Why may the financial information in an unadjusted...Ch. 4 - Distinguish between the two categories of...Ch. 4 - What types of accounts does a company debit and...Ch. 4 - Prob. 9Q Ch. 4 - Prob. 10Q

Solution Summary: The author analyzes how the president urged the controller T to accrue every possible revenue and defer expenses by making year end adjusting entries and make the company profitable in the current year.

Concept explainers

To Identify: The ethical considerations of the president’s request, and T’s dating the adjusting entries December 31.

To Ascertain: If T can do accruing revenues and deferring expenses and still be ethical.

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Chapter 4 Solutions