the cash receipts book open for one close us down, put us all out of our jobs!\"
ID: 2333144 • Letter: T
Question
the cash receipts book open for one close us down, put us all out of our jobs!" Lisa continues, "1 talked to Oconto Distributors (one of Linbarger's largest customers) this morning. They said they sent us a check for $150,000 yesterday, We should receive it Lisa is nervous and instructs you to keep company. Lisa says, "If we don't get that cash balance over $200,000, we"ll default os our loan apreement. They could day for purposes of the June 30 report to the faces? rationale for why these are ethical 2. What are the ethical considerations in this case? 3. What are the negative impacts that can happen if you do not follow Lisa Infante's instractions to wait one more day to post the balance? 5. What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned is this class MacBook ProExplanation / Answer
ANSWER:
1) In the given case, the mainissue of accounting problem that Linbarger Company faces is identified with its money administration. Since the organization is bound by an agreement to keep up a base money adjust of $200,000 every month, the organization needs to legitimately design its money administration to guarantee the base adjust prerequisite. The ways can be here and now financing, accelerate gathering of Accounts Receivable and so on.
2) In the given case, Lisa Infante wishes to concede shutting of the money book for one day, which is totally off base as there must be consistency in shutting the books and they should get shut on the most recent day of the period. Despite the fact that Lisa is certain of getting the check in one day, it doesn't agree to the guidelines. This would be a stiff-necked blunder that may result in aggregate mistakes.
3) The negative effect of not following Lisa's direction would be any antagonistic advance taken by the insurance agency because of rupture of agreement. The unfriendly advances incorporate prompt advance reimbursement required by the insurance agency, which may put a gigantic weight over the organization bringing about quick offer of numerous advantages of the organization bringing about chop down in tasks, which would additionally result in work cuts. On the off chance that the weight turns out to be enormous, the organization might be compelled to abandonment too.
4) The full consistence on the bookkeeping standards would result in break of the agreement. This rupture would affect each partner identified with the organization adversely. The partners incorporates investors of the organization, its workers, its leasers and its provider as every one of them will get affected by any adjustments in the organization's the same old thing.
5) The most ideal approach to manage this situation would be a fleeting credit with residency of 2-3 days. Such credits can be benefited from currency markets wherein here and now advances are managed.
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