Ethical Case Study: 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. To Identify: The stakeholders in this situation.
Ethical Case Study: 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. To Identify: The stakeholders in this situation.
Solution Summary: The author explains the ethical considerations in the case of accountant, senior management, and plants personnel.
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.
To Identify: The stakeholders in this situation.
b)
To determine
To Identify: The ethical considerations in this situation.
I am looking for the correct answer to this general accounting question with appropriate explanations.
A business had:
• Assets on Dec 31, Year 1: $820,000
• Liabilities on Dec 31, Year 1: $310,000
• Owner investments in Year 2: $45,000
Dividends paid in Year 2: $25,000
• Assets on Dec 31, Year 2: $870,000
• Liabilities on Dec 31, Year 2: $290,000
What is net income for Year 2?
WHICH OF THE FOLLOWING IS AN EXAMPLE OF A LABOR COST STANDARD?
A. $40 PER DIRECT LABOR HOUR
B. 50 SQUARE FEET PER UNIT
C. $0.95 PER SQUARE FOOT
D. 0.5 DIRECT LABOR HOURS PER UNIT
Chapter 5 Solutions
Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
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