Question
In: Accounting
Anton Blair is the manager of a medium-size company. A few years ago, Blair persuaded the...
Anton Blair is the manager of a medium-size company. A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year. Each December he estimates year-end financial figures in anticipation of the bonus he will receive. If the bonus is not as high as he would like, he offers several recommendations to the accountant for year-end adjustments. One of his favorite recommendations is for the accountant to reduce the estimate of doubtful accounts.
Required
1. What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?
2. Do you believe Blair’s recommendation to adjust the allowance for doubtful accounts is within his rights as manager, or do you believe this action is an ethics violation? Justify your response.
3. What type of internal control(s) might be useful for this company in overseeing the manager’s recommendations for accounting changes?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Anton Blair is the manager of a medium-size company. A few years ago, Blair persuaded the...
Anton Blair is the manager of a medium-size company. A few years
ago, Blair persuaded the owner to base a part of his compensation
on the net income the company earns each year. Each December he
estimates year-end financial figures in anticipation of the bonus
he will receive. If the bonus is not as high as he would like, he
offers several recommendations to the accountant for year-end
adjustments. One of his favorite recommendations is for the
controller to reduce...
Instructor - Lead Question Anton Blair is the manager of a medium-size company. A few years...
Instructor - Lead Question
Anton Blair is the manager of a medium-size company. A few years
ago, Blair persuaded the owner to base a part of his compensation
on the net income the company earns each year. Each December he
estimates year-end financial figures in anticipation of the bonus
he will receive. If the bonus is not as high as he would like, he
offers several recommendations to the accountant for year-end
adjustments. One of his favorite recommendations is for...
Margaret is the manager of a medium-size company. A few years ago, Margaret persuaded the owner...
Margaret is the manager of a medium-size company. A few years
ago, Margaret persuaded the owner to base a part of her
compensation on the net income of the company. Each December she
estimates year-end financial figures in anticipation of the bonus
she will receive. If the bonus is not as high as she would like,
she offers several recommendations to the accountant for year-end
adjustments. One of her favorite recommendations is for the
controller to reduce the estimate of...
Bud Owens is the manager of a medium-size company. A few years ago, Bud persuaded the...
Bud Owens is the manager of a medium-size company. A few years
ago, Bud persuaded the owner to base a part of his compensation on
the net income the company earns each year. Each December he
estimates year-end financial figures in anticipation of the bonus
he will receive. If the bonus is not as high as he would like, he
offers several recommendations to the accountant for year-end
adjustments. One of his favorite recommendations is for the
controller to reduce...
Tom Clark is a manager of a medium-size company. A few years ago, Clark persuaded the...
Tom Clark is a manager of a medium-size company. A few years
ago, Clark persuaded the owner to base a part of the compensation
on the net income the company earns each year. Each December he
estimates year-end financial figures in anticipation of the bonus
he will receive. If the bonus is not as high as he would like, he
offers several recommendations to the accountant of the year-end
adjustments. One of his favorite recommendations if for the
controller to...
Celia Lopez is a manager of a medium-size company. A few years ago, Lopez persuaded the...
Celia Lopez is a manager of a medium-size company. A few years
ago, Lopez persuaded the owner to base a part of compensation on
the net income the company earns each year. Each December, she
estimates year-end financial figures in anticipation of the bonus
she will receive. If the bonus is not as high as she would like,
Lopez offers several recommendations to the accountant of the
year-end adjustments. Once of her favorite recommendations is for
the controller to reduce...
Tina Rodgers is the manager of a medium-size company. A few years ago, Tina Rodgers persuaded...
Tina Rodgers is the manager of a medium-size company. A few
years ago, Tina Rodgers persuaded the owner to base a part of her
compensation on the net income the company earns each year. Each
December she estimates year-end financial figures in anticipation
of the bonus she will receive. If the bonus is not as high as she
would like, she offers several recommendations to the accountant
for year-end adjustments. One of her favorite recommendations is
for the controller to...
A few years ago, it cost millions of dollars to outfit a store the size of...
A few years ago, it cost millions of dollars to outfit a store
the size of a 7-Eleven with cameras and a high-performance computer
server for cashierless technology. Now, it costs anywhere from
$100,000 to $300,000 to outfit the same size store, depending on
how many cameras and the type of hardware used. Based on this
information, how quickly will cashierless technology diffuse?
Bill and Clare are mushroom farmers. Three years ago, they were persuaded by Vernon, Bill’s brother...
Bill and Clare are mushroom farmers. Three years ago, they were
persuaded by Vernon, Bill’s brother to incorporate a company to
start selling mushrooms to supermarkets. To do this Vernon invested
heavily and they established Mushroom TopiaPty Ltd (Mushroom).
Vernon and Bill each had 300 shares in Mushroomwhile Clare had 200
shares. All three of them actively participated in the company's
management and each became directors.
Last year Clare suffered a mild heart attack and decided that
she should resign...
Imagine that you are an IT manager in a medium-size organization with 200 IT professionals. The...
Imagine that you are an IT manager in a medium-size organization
with 200 IT professionals. The CIO has asked you to develop a
presentation covering the “top 10 things the IT professional needs
to know about IT risk.” Utilizing our course materials and other,
solid sources from the web and library, and other course materials
you have studied, develop a set of notated presentation slides that
cover what your CIO wants. Hint: Start by defining risk and
distinguishing it from...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
ADVERTISEMENT