During the preparation of a bank reconciliation, the assistant controller discovered that the Bank incorrectly recorded a $3290 check as $329.  The controller has decided not to notify the bank but wait for the bank to detect the error.  The controller plans to record the $2961 error as "Other Income" if the Bank fails to detect the error within the next three months.  Please discuss whether the controller is behaving in an ethical manner.

Question

During the preparation of a bank reconciliation, the assistant controller discovered that the Bank incorrectly recorded a $3290 check as $329.  The controller has decided not to notify the bank but wait for the bank to detect the error.  The controller plans to record the $2961 error as "Other Income" if the Bank fails to detect the error within the next three months.  Please discuss whether the controller is behaving in an ethical manner. How are cash equivalents reported in the financial statements?  Please list two examples of cash equivalents. 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Ethics

Bank Reconciliation

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: What is meant by the term cost driver? What is a volume-based cost driver?

A: Activity-based costing: It is a method that helps in finding the activities performed by a company a...

Q: What is a static planning budget?

A: Budget: It is a statement of revenues and expenditures to be incurred by the company for a particula...

Q: Orbital Communications, Inc. manufactures communications satellites used in TV signal transmission. ...

A: Annual Differential Cost between two alternatives : $33,000

Q: 1.Read the statements below and answer the question - The earnings process should be completed entit...

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,...

Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of ...

A: a. Calculate the amount of adjusting entry for uncollectible accounts.

Q: Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variabl...

A: Manufacturing Overhead Flexible budget performance report: First step of preparing a flexible budget...

Q: Two companies have identical fixed expenses, unit variable expenses, and profits. Yet one company ha...

A: Click to see the answer

Q: How can a hotel’s management use cost-volume-profit analysis to help in deciding on room rates?

A: Cost Volume Profit Analysis:   It is an analysis used to determine the manner in which the type of c...

Q: Gawucho Furniture Manufacturing Company (Gawucho) commenced business on 1st January, 2019, preparing...

A: Accounting transaction: It can be defined as the event taken place in the business that creates a mo...