Guillermo Furniture Scenario Essay

The “cooking the books” case study is intended to raise our awareness on an accounting issue that bankrupted firms and caused hundreds of employees to lose jobs. People are often challenged to make decisions on the business environment day-to-day. The contemporary companies often require following an ethical model when making these decisions. Strong decision making and business ethics can also help companies select the best business opportunities. The paper discusses a business ethic scenario and solutions to resolve the dilemma of recording unrecognized revenue under the generally accepted accounting principles (GAAP). The paper would outline steps to assess and address the problem

Castillo Products improved from an operating loss in 2009 to profitability in 2010. The net profit margin went from negative to positive. The asset turnover (total-sales-to-total-assets)

Financial reporting practices and ethics have manifested an ocean of literature. This has mainly come from organization theorists that address accounting practices. These theorists and professionals have given fresh accountability measures. Their ideals give this industry the tools needed to survive, grow and prosper. The way an organization prepares and reports its financial information and handles its daily operations is in essence financial practices, and in the way it accomplishes this reveals their ethical standards to which they adhere to. This paper will discuss the financial practices, ethical standards, and

John Atherley is the owner of Atherley Furniture Company located near Orillia, Ontario. In recent years the progression of his chair division has had mediocre results and profits have been declining steadily each year. From the years 1995 to 1998 Atherley Furniture’s total profits have suffered a 24% loss within that time span. In the company’s chair division there are three models of chairs that have quite the reputation the “Caledonia”, “Atherley”, and lastly the “Parkdale”. Growing concern for the company’s performance led the executive team to analyze income statements for each model to determine the attributed expenses and revenues. With a decline in profits for the Atherley Company, it is crucial that they

Guillermo Navallaz is the proud owner of Guillermo’s Furniture Store located in Sonora, Mexico. He chose this area because of its excellent supply of timber for the variety of tables and chairs produced by his company. Business was going well until the late 1990s’ when two events caused a decline in Guillermo’s business. First, a new overseas competitor entered the Sonora furniture market with their high-tech approach that provided furniture to exact customer specifications at low prices. The second event was that the community of Sonora began to grow. The increase of people and jobs

There are three alternatives available to the Guillermo’s Furniture Store. One is they can keep the current position or they can become broker or make it high-tech. Therefore, Guillermo’s furniture store can divide the project into current project, High tech project and the broker project.

Accountants are held to a higher ethical standards and they must performed their duties in compliance with standards or ethical values of honesty, integrity, objectivity, due care, confidentiality, which must be fully committed to. They must put clients or public interest first before their own. They must have and ethical values and maintain those values way beyond what the society or the company’s code of ethic. It is important that accountants’ behavior or ethical values is in conformity with the

Ethics are crucial to the accounting profession and the business world, so choosing an ethics system to base your moral decisions on is extremely important. Accountants and all business professionals will be confronted with moral dilemmas on a daily basis. Being strong in your faith and knowing what you believe in will help you to always make the right decision. Based on this reasoning, this essay will explain why deontology is the best ethics system for the accounting profession.

The study is important because it examines the role of ethics in accounting. The research on identified problems is necessary due to vagueness of ethics concepts and its difficulty to

(Panza & Potthast, n.d.) Ethics is very important to a company’s success. Ethical behavior can bring benefits to a business. They can attract customers, which can lead to a boost in sales and profits. It can attract the right employees and increase productivity. It can also attract investors and keep the company’s share price high. Unethical behavior on the other hand can damage a company’s reputation and make it less appealing to stakeholders. It could also result in lower profits.

If anything it should be displayed and be promoted the most, and should be a part of a quarterly training so that it stays fresh in the minds of management as well as employees. When top executives practices ethical behavior, it behooves their employees to follow suit. Financial management tends to create a variety of problems, hence the importance of why a financial institute or an accounting firm should ensure that their ethical standards include discretion, honesty, fairness and proficiency. Therefore, when at a crossroad in making the right decisions, management will be able to look back at the company’s ethical standards which will assist them in making the right decision.

Ethical issues have greatly transformed in our lives since the great Enron, Xerox and other huge corporations proposed big profits showing earnings of billions of dollars and yet in reality facing bankruptcy. These corporations faced great trouble with the federals and state for manipulating financial statements. But not only corporations can be blamed on this, accounting firms were involved in this as much as the corporations were. With the business stand point, ethics comprises of principles and standards that guide behavior. Investors, traders, customers, and legal system determine whether a specific action is ethical or unethical. Ethical issue is a vast subject, but we will look at the niche

The field of accounting has a code of ethics for very important reasons. Investors and creditors need assurance that the financials of the company they are investing in are accurate. If the financials of a company are not created accurately or if the information is falsified and inaccurate, investors and creditors have the potential to lose lots of money. Ethics standards and controls have increased in more recent years due to a number of scandals between large corporations. Enron is one of the most known examples, as many investors lost enormous amounts of money and life savings due to embezzlement and falsifications from the company and the accountants handling the financials.

Ethical issues arise in the midst of financial accounting on a frequent basis. Several tempting situations occur by the hour in firms of every kind. Society pressures individuals to do dishonest things in order to appear acceptable in the workplace, especially when working in finance or accounting. The majority of corporate America has disregarded the concept of ethics in the workplace. Although this is not morally correct, it happens on a daily basis in today’s world. Ethical issues, such as pressure from management to complete dishonest acts, greediness in the workplace, omitting financial records and breaking confidentiality with company records are some important problems financial accounting companies must address in order to run corporate America in a proper manner.

In today’s world, ethics became a significant part of the environment. Ethics refers to the morale, values and rules which tells what is the right thing to do. Business also includes ethics which governs the operation of businesses and how to take decisions as well as how to treat people. Ethics in company can be described as behaviour, ethical principles or worth that requested in the globe of commerce. The acceptability of company ethics can be ambitious by client and competitors. Business ethics are implemented so as to become belief amid client alongside the company organization. It is extremely vital in requesting ethics in company because the company can be successful after become the belief from the clients, vendors, suppliers and stockholders. A positive ethical atmosphere also improves the morale among workers which leads to increase in efficiency and effectiveness which result in achieving of organisational goals. In this essay I am going to talk about the importance of business ethics in corporate reporting and ethical issues that lead to corporate collapses. (E. Merrick Dodd, 1932)