. Balanced scorecard is one of those management fads that will disappear several
ID: 2721007 • Letter: #
Question
. Balanced scorecard is one of those management fads that will disappear several years in the future. In addition, managerial accounting should be about the numbers and not subjective criteria. Please support or refute the above statements.
2. You are new accountant at the company and your boss orders you to backdate several sales invoices so that the sales are recognized in the previous fiscal year and not the current year. Assuming that the sales are legitimate, what is the harm of adjusting the timing of the sales? What would you do if the boss orders you to make the changes?
Explanation / Answer
1) I object as the balance scorecard is required for well being of the company. This gives the correct picture of the company running where the steps has to be taken.
Second statement also I oppose as managerial accounting is both qualitative and quantitative information is provided. Qualitative information like which divison of company is performing well and It gives more stress on the analysis of future projections
2)The harm of adjusting the sales is that is not adherence to regulations and GAAP standards, and disclosure. If we adjust the sales, the financial statementproduced will not be according to GAAP rules . All sales must be recorded in the proper accounting period. In addition, if and when the financial statements are ever audited, they would never pass an audit, as the auditing procedure will not be met
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