Ruiz
.docx
keyboard_arrow_up
School
Riverside City College *
*We aren’t endorsed by this school
Course
42652
Subject
Accounting
Date
May 24, 2024
Type
docx
Pages
3
Uploaded by AmbassadorIceWasp28
Ethics Case, 1
Ethics Case
Maria Ruiz as Shown in Canvas
For
ACC 1A – Principles of Accounting 1
Riverside Community College
Dr. Julie Browning, PhD, CPA, CMA, CGMA
07/07/2023
Ethics Case, 2
Ethics Case
In the given question, on behalf of Squid Realty Co., Daryl applied to Ocean National Bank for a loan of $375000. Based on the company’s financial statement which had been prepared on a cash basis, the Ocean National Bank loan officer rejected the loan application as too risky. Parties Involved in the Case
As per the Generally Accepted Accounting Principle (GAAP), Accounting can be done on either a cash basis or accrual basis. The difference between two related to when revenue and expenses are recognizes money as it comes in or goes out. This method keeps the book up to date
and gives the owner a real tine view of the business finances. One of the major limitations, however, is that it does not account for the receivables and therefore does not always show the big picture of a company’s finances. While the Accrual method books the earned revenue or expenses when they are incurred and not when they are received. Accrual accounting gives a holistic perspective of the business and a good view of the overall health of the company.
Ethical Issues
In the given case, after receiving the rejection notice, Daryl instructed his accountant to prepare the financial statement on an Accrual basis. This is ethical as banks prefer the financial statement of the company to be prepared on an accrual basis as it allows the lenders to have a good view of the overall health of the company. It allows the lender to determine if the finances are healthy and the income is sufficient to service the debt the company has and for which it is applying. So, revising the financial statement as per Accrual method for the purpose of loan application is ethical. Also, Daryl then instructed his accountant to record an additional $30,000 of accounts receivable for commissions on the property for which a contract has been signed on
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Interpretation of Account is the
Select one:
a.
To know the causes for the prevailing performance of business
b.
All of the correct answer
c.
To know financial strengths and weaknesses of a business
d.
Art and science of translating the figures
Government agency gives a CPA certificate to an accountant after he passes a series of rigorous examinations administered by the Board of Accountancy (BOA).
Select one:
a.
School Registrar
b.
Civil Service Commission
c.
BIR
d.
{
e.
PRC
Which of the following is a mechanical aspect of accounting?
Select one:
a.
Preparation of a financial budget
b.
Designing the accounting system
c.
Analyzing the transactions preparatory to the recording process.
d.
Reviewing the effectiveness of the internal control procedures
arrow_forward
This is a sample application form for business loan in a bank. Directions: Fill out the form with the
following details.
a. Assume any type of business of your choice, create its name, address, mobile number, and email
address.
b. You are a one-year existing client of the bank since January 1, 2018, with payroll account
523-54897 and an outstanding balance of Php 150,000.00.
c. It is a family business, a single proprietor, and 3 years in operation. You have 5 employees.
d. Tax Identification Number of the business is 404-143-877-001.
e. The past year's net income is Php 300,000.00.
f. It is your first time to apply for a loan. The amount you plan to loan is Php 500,000.00 payable for
36 months and the purpose is to remodel your store.
arrow_forward
Directions:
Case I: The AICPA Code of Professional Conduct
Isaac Newey, CPA, is considering leaving a position at a major public accounting firm to join
the staff of a local bookkeeping and advisory firm that does write-up work, tax preparation
and planning, and financial planning. The local firm is not owned by CPAS and does not provide
attest services.
Question:
Are the Rules of Conduct applied differently to CPAS who work for a local financial institution
like the one described above, as compared to a major public accounting firm?
arrow_forward
Prepare an explanatory memorandum about financial performance and record keeping requirements.
The operations manager of Metharom Construction has asked you to prepare an explanatory memorandum for the accounting staff.
They have requested that you include the following information:
A) a description of a minimum of 5 financial records that the company must maintain
B) any three factors while selecting software that could assist with finance management for small business
C) list any 5 regulatory requirement for lodgement and payment of statutory obligations
D) a set of policies to for Debt recovery procedures (minimum 3)
E) explain how financial performance will be monitored (include a minimum of 2 key performance indicators)
F) set of minimum 6 written financial procedures for Metharom which will help in financial health check for stakeholders
G)This document must then be sent electronically to the Operations Manager (your assessor) as well as submitted in hard copy.
arrow_forward
Advanced Accounting requires many rules and regulations. The latter come from many sources. In your Journal this week you will research two rules or regulations that pertain to Advanced Accounting topics and submit them to your Unit 1 Journal. For each of the rules or regulations, answer the following questions.
What is the name of the rule or regulation?
What agency or government created the rule or regulation?
Does any agency or government have the power to enforce the rule or regulation? If so how? If not, does this hinder the enforcement of the rule or regulation?
arrow_forward
Case Study
You have applied for a public relations (PR) position with a RM 10.2 million savings and loan association, a conservative financial institution that has been in existence for over 50 years. The organization has never employed a PR person before. Now that its assets have risen above 10 million, however, the president of the institution feels it is time to hire someone to ‘do the PR’.
During an interview, the president admits he is not sure what PR is, but he is fairly sure he wants the person he hires to plan promotions and stage events that will attract new customers, write stories that will get free space and time in the local media and start an employee publication. The president also states that he is open to suggestions about the position and asks you to explain how you would establish a professional, effective PR program if you were hired.
arrow_forward
Customers who want to know if a company will stay in business in the long term to honour warranties are considered ________ of accounting information.
Select answer from the options below
external users
primary users
indirect users
internal users
arrow_forward
REQUIRED:
You are required to prepare a reflection paper that incorporates your answers to the following questions:
1. Why are financial statements important? What problems can you foresee if a business manager does not
have a basic knowledge of financial statements?
Adapted from:
Price, J., Haddock, M., & Farina, M., (2021). College Accounting, 16th edition. McGraw-Hill Education.
2. Your friend is thinking of ways to lower tax by lowering the net income using the following means:
Do not adjust for accrued revenue for any earned revenues, cash is not collected anyway.
Adjust the full amount of prepaid expense as expenses even if not yet used.
Explain to your friend the accounting implications and ethical considerations of her idea.
●
●
arrow_forward
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow.
Total assets
$121,568
Total liabilities
$862
Total equity
$120,706
Required:1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.77. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank? (Round your intermediate calculations to the nearest dollar amount.)2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.)(a) What percentage of assets would be financed by debt?(b) What percentage of assets would be financed by equity?
arrow_forward
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets . $120,268 Total liabilities . $875 Total equity $119,393 Required 1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.8. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? 2. If Business Solutions borrows the maximum amount allowed from the bank, what percentage of assets would be financed (a) by debt and (b) by equity? 3. What are some factors Santana Rey should consider before borrowing the funds?
arrow_forward
e 1:E1
OMANTEL
Practice (page 5 .
...
moodle.nct.edu.om
P Flag question
Timely payment of taxes comes under
objective of financial
managment
a. Social Objectives
b. Research Objectives
c. None
d. Basic objectives
e. Operational Objectives
العربية
الإنجليزية
arrow_forward
C. In June, Nikea Inc. received the $10,000 payment from XYZ Which of Nikea's accounts
are affected by this transaction and what is its effect on the accounting equation?
Type your response here:
D. What is the effect on XYZ's accounting equation in June when it remitted the $10,000?
Type your response here:
Evaluation
Your teacher will use this rubric to evaluate the completeness of your work as well as the
clanty of thinking you exhibit
Total Points: 100
Basics of Fundamental Accounting
Task points: (100]
The owner invests more money in the business
(10]
arrow_forward
Determining organizations that govern accounting
Suppose you are starting a business, Wholly Shirts, to imprint logos on T-shirts. In organizing the business and setting up its accounting records, you take your information to a CPA to prepare financial statements for the bank. Name the organization that governs the majority of the guidelines that the CPA will use to prepare financial statements for Wholly Shirts. What are those guidelines called?
arrow_forward
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term
bank loan. Selected account balances at March 31, 2020, for Business Solutions follow.
Total assets $121,068 Total liabilities $867 Total equity $120, 201
Required:
1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to-
equity ratio not exceed 0.88. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this
bank? (Round your intermediate calculations to the nearest dollar amount.)
2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the
nearest whole number and final answers to 1 decimal place.)
(a) What percentage of assets would be financed by debt?
(b) What percentage of assets would be financed by equity?
1.
2.
2. (b)
(a)
Maximum amount
Percentage of assets financed by debt…
arrow_forward
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term
bank loan. Selected account balances at March 31, 2022, for Business Solutions follow.
Total assets
$120,568
Total liabilities
$872
Total equity
$119,696
Required:
1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to-
equity ratio not exceed 0.83. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank?
(Round your intermediate calculations to the nearest dollar amount.)
2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the
nearest whole number and final answers to 1 decimal place.)
(a) What percentage of assets would be financed by debt?
(b) What percentage of assets would be financed by equity?
1. Maximum amount
2. (a) Percentage of assets financed by debt
%
2. (b)…
arrow_forward
Assume that you have finished your MBA program and have applied for a position in the FinancialAccounting Department of a large multinational company. The company is struggling with itsaccounting reporting matters and several accounting reports are under regulatory scrutiny. In theinterview board, the recruitment committee members have asked you the following question
i. What have you learnt in the BUS 505 (Accounting Principles) course relating to financial accounting?
arrow_forward
Below are possible career opportunities for those earning a degree in accounting. Indicate whether the statement related to each career is true or false.(True/False) Someone earning a degree in accounting could pursue the following career:1. ________ Auditor2. ________ Tax preparer3. ________ Business consultant4. ________ Financial planner5. ________ Forensic investigator6. ________ Tax planner7. ________ Financial analyst8. ________ Information technology developer9. ________ Investment banker10. ________ Tax lawyer11. ________ FBI agent12. ________ Information risk manager
arrow_forward
Description and Instructions
Suppose you are a part of a group of students from a prominent university and were sent out as a team to work with a leading merchandizing company as a part of a work experience program. The team having been introduced to the general manger was told that the Accountant who normally prepares the financial statements has suddenly resigned and there is no one available to prepare the company’s financial statements which are now due. As aspiring university students, you and your group members have expressed an interest in taking on the task. As a group, you are required to collaborate and analyse the problem at hand then apply the accrual basis of accounting in the preparation of the company’s financial statements.
The problem to be resolved:
The following trial balance was extracted from the books of Scholes Farm Ltd December 31, the end of the company’s financial year. The company is owned by Paul Scholes and is in the business of buying and farming…
arrow_forward
Can you help with question, In a minimum of 175 words.
Many of us apply the time value of money in our personal lives – for example, when we invest dollars in a young child’s bank account earmarked for his or her eventual college education. Share an explanation of the time value of money in your own words. What criteria do accountants use to decide whether to use present or future values in accounting statements?
arrow_forward
Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow.
Total assets
$120,268
Total liabilities
$875
Total equity
$119,393
The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.8. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank?
Assume Business Solutions borrows the maximum amount allowed from the bank.
What percentage of assets would be financed by debt?
What percentage of assets would be financed by equity?
arrow_forward
Choose the letter of the correct answer
39. It is the preparation of general-purpose financial statements.
a. Accounting research b. Cost accounting c. Financial accounting d. Auditing
40. This type of business offers professional skills, advice and consultations.
a. Buy and sale b. Service business c. Manufacturing business d. Merchandising business
41. It is a duly registered association of persons with a common bond of interest, voluntarily joining together to achieve their social, economic and cultural needs.
a. Corporation b. Parnership c. Sole proprietorship d. Cooperatives
42. It is also the body authorized by law to promulgate the rules and regulations affecting the practice of the accountancy profession in the Philippines.
a. Professional Regulatory Commission c. Board of Accountancy
b. Philippine Institute of Certified Public Accountant d. Commmisson on Audit
43. It regulates the operations of all banks and business import and export activities.
a.…
arrow_forward
Assume that you have finished your MBA program and have applied for a position in the FinancialAccounting Department of a large multinational company. The company is struggling with itsaccounting reporting matters and several accounting reports are under regulatory scrutiny. In theinterview board, the recruitment committee members have asked you the following questions.
i. What have you learnt in the BUS 505 course relating to financial accounting?
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305080577/9781305080577_smallCoverImage.gif)
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Related Questions
- Interpretation of Account is the Select one: a. To know the causes for the prevailing performance of business b. All of the correct answer c. To know financial strengths and weaknesses of a business d. Art and science of translating the figures Government agency gives a CPA certificate to an accountant after he passes a series of rigorous examinations administered by the Board of Accountancy (BOA). Select one: a. School Registrar b. Civil Service Commission c. BIR d. { e. PRC Which of the following is a mechanical aspect of accounting? Select one: a. Preparation of a financial budget b. Designing the accounting system c. Analyzing the transactions preparatory to the recording process. d. Reviewing the effectiveness of the internal control proceduresarrow_forwardThis is a sample application form for business loan in a bank. Directions: Fill out the form with the following details. a. Assume any type of business of your choice, create its name, address, mobile number, and email address. b. You are a one-year existing client of the bank since January 1, 2018, with payroll account 523-54897 and an outstanding balance of Php 150,000.00. c. It is a family business, a single proprietor, and 3 years in operation. You have 5 employees. d. Tax Identification Number of the business is 404-143-877-001. e. The past year's net income is Php 300,000.00. f. It is your first time to apply for a loan. The amount you plan to loan is Php 500,000.00 payable for 36 months and the purpose is to remodel your store.arrow_forwardDirections: Case I: The AICPA Code of Professional Conduct Isaac Newey, CPA, is considering leaving a position at a major public accounting firm to join the staff of a local bookkeeping and advisory firm that does write-up work, tax preparation and planning, and financial planning. The local firm is not owned by CPAS and does not provide attest services. Question: Are the Rules of Conduct applied differently to CPAS who work for a local financial institution like the one described above, as compared to a major public accounting firm?arrow_forward
- Prepare an explanatory memorandum about financial performance and record keeping requirements. The operations manager of Metharom Construction has asked you to prepare an explanatory memorandum for the accounting staff. They have requested that you include the following information: A) a description of a minimum of 5 financial records that the company must maintain B) any three factors while selecting software that could assist with finance management for small business C) list any 5 regulatory requirement for lodgement and payment of statutory obligations D) a set of policies to for Debt recovery procedures (minimum 3) E) explain how financial performance will be monitored (include a minimum of 2 key performance indicators) F) set of minimum 6 written financial procedures for Metharom which will help in financial health check for stakeholders G)This document must then be sent electronically to the Operations Manager (your assessor) as well as submitted in hard copy.arrow_forwardAdvanced Accounting requires many rules and regulations. The latter come from many sources. In your Journal this week you will research two rules or regulations that pertain to Advanced Accounting topics and submit them to your Unit 1 Journal. For each of the rules or regulations, answer the following questions. What is the name of the rule or regulation? What agency or government created the rule or regulation? Does any agency or government have the power to enforce the rule or regulation? If so how? If not, does this hinder the enforcement of the rule or regulation?arrow_forwardCase Study You have applied for a public relations (PR) position with a RM 10.2 million savings and loan association, a conservative financial institution that has been in existence for over 50 years. The organization has never employed a PR person before. Now that its assets have risen above 10 million, however, the president of the institution feels it is time to hire someone to ‘do the PR’. During an interview, the president admits he is not sure what PR is, but he is fairly sure he wants the person he hires to plan promotions and stage events that will attract new customers, write stories that will get free space and time in the local media and start an employee publication. The president also states that he is open to suggestions about the position and asks you to explain how you would establish a professional, effective PR program if you were hired.arrow_forward
- Customers who want to know if a company will stay in business in the long term to honour warranties are considered ________ of accounting information. Select answer from the options below external users primary users indirect users internal usersarrow_forwardREQUIRED: You are required to prepare a reflection paper that incorporates your answers to the following questions: 1. Why are financial statements important? What problems can you foresee if a business manager does not have a basic knowledge of financial statements? Adapted from: Price, J., Haddock, M., & Farina, M., (2021). College Accounting, 16th edition. McGraw-Hill Education. 2. Your friend is thinking of ways to lower tax by lowering the net income using the following means: Do not adjust for accrued revenue for any earned revenues, cash is not collected anyway. Adjust the full amount of prepaid expense as expenses even if not yet used. Explain to your friend the accounting implications and ethical considerations of her idea. ● ●arrow_forwardSantana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow. Total assets $121,568 Total liabilities $862 Total equity $120,706 Required:1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.77. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank? (Round your intermediate calculations to the nearest dollar amount.)2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.)(a) What percentage of assets would be financed by debt?(b) What percentage of assets would be financed by equity?arrow_forward
- Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets . $120,268 Total liabilities . $875 Total equity $119,393 Required 1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.8. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? 2. If Business Solutions borrows the maximum amount allowed from the bank, what percentage of assets would be financed (a) by debt and (b) by equity? 3. What are some factors Santana Rey should consider before borrowing the funds?arrow_forwarde 1:E1 OMANTEL Practice (page 5 . ... moodle.nct.edu.om P Flag question Timely payment of taxes comes under objective of financial managment a. Social Objectives b. Research Objectives c. None d. Basic objectives e. Operational Objectives العربية الإنجليزيةarrow_forwardC. In June, Nikea Inc. received the $10,000 payment from XYZ Which of Nikea's accounts are affected by this transaction and what is its effect on the accounting equation? Type your response here: D. What is the effect on XYZ's accounting equation in June when it remitted the $10,000? Type your response here: Evaluation Your teacher will use this rubric to evaluate the completeness of your work as well as the clanty of thinking you exhibit Total Points: 100 Basics of Fundamental Accounting Task points: (100] The owner invests more money in the business (10]arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305080577/9781305080577_smallCoverImage.gif)
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College