Chapter 7, Problem 77.1C

To determine

Introduction:

Ethics means morals implies moral rules that oversee an individual’s conduct or the directing of an action.

Internal control means an inward control is a methodology or strategy set up by the executives to shield resources, advance responsibility, increment effectiveness, and stop fake conduct. As it were, an interior control is a procedure set up to keep representatives from taking resources or submitting extortion.

Capitalization decision means Capitalization, in bookkeeping, is the point at which the expenses to procure an advantage are expensed over the life of that benefit as opposed to in the period it was brought about. In money, capitalization is the entirety of an organization’s stock, long haul obligation, and held income.

To choose:

What are the probable consequences of this behavior for the company?