Problem 7 Angat Buhay, a charitable organization in Muntinlupa City, has a standing agreement with First Standard Bank. The agreement allows Angat Buhay to overdraw its cash balance at the bank when donations are running low. In the past, Angat Buhay managed funds wisely and rarely used this privilege. BBM has recently become the president of Angat Buhay. To expand operations, BBM is acquiring office equipment and pending large amounts for Fundraising. During his presidency, Angat Buhay has maintained a negative bank balance of approximately P10,000. Required: What is the ethical issue in this situation? State why you approve or disapprove of BBM's management of Angat Buhay.

Problem 7 Angat Buhay, a charitable organization in Muntinlupa City, has a standing agreement with First Standard Bank. The agreement allows Angat Buhay to overdraw its cash balance at the bank when donations are running low. In the past, Angat Buhay managed funds wisely and rarely used this privilege. BBM has recently become the president of Angat Buhay. To expand operations, BBM is acquiring office equipment and pending large amounts for Fundraising. During his presidency, Angat Buhay has maintained a negative bank balance of approximately P10,000. Required: What is the ethical issue in this situation? State why you approve or disapprove of BBM's management of Angat Buhay.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 45E

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