Ethics in Accountin – Week 9
Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting.
Instructions:
Read the following scenario.
Answer the questions that follow. Your answers should result in a 2-3 page submission.
Reference back to your text book for guidance on how to think through the scenario.
Scenario:Imagine you are the assistant controller in charge of general ledger accounting at Linbarger Company. Your company has a large loan from an insurance company. The loan agreement requires that the company’s cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000. You give this update to Lisa Infante, the financial vice president. Lisa is nervous and instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, “If we don’t get that cash balance over $200,000, we’ll default on our loan agreement. They could close us down, put us all out of our jobs!” Lisa continues, “I 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 tomorrow. If we include just that one check in our cash balance, we’ll be in the clear. It’s in the mail!”
Questions
What is the accounting problem that the Linbarger Company faces?
What are the ethical considerations in this case? Provide rationale for why these are ethical considerations.
What are the negative impacts that can happen if you do not follow Lisa Infante’s instructions to wait one more day to post the balance?
Who will be negatively impacted if you do comply? Provide a rationale for why these individuals will be impacted.
What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.
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DESCRIPTION: ACC 100 WEEK 9 ASSIGNMENT: ETHICS IN ACCOUNTING
Grid View
List View
Unacceptable 0- 59% F Meets Minimum Expectations 60-69% D Fair 70-79% C Proficient 80-89% B Exemplary 90-100% A
ACC100-A1-1
1.What is the accounting problem that the Linbarger Company faces?
Points Range:0 (0%) – 14.16 (11.8%)
Student did not submit the assignment or did not address the question
Points Range:14.4 (12%) – 16.56 (13.8%)
Student work identifies the incorrect problem. Problem identified is logical
Points Range:16.8 (14%) – 18.96 (15.8%)
Work begins to identify the correct problem. More detail is needed.
Points Range:19.2 (16%) – 21.36 (17.8%)
Work identifies the correct problem with sufficient detail
Points Range:21.6 (18%) – 24 (20%)
Work identifies the correct problem and the explanation is logical and well supported.
ACC100-A1-2
2.What are the ethical considerations in this case?
Points Range:0 (0%) – 14.16 (11.8%)
Student did not submit the assignment or did not address the question
Points Range:14.4 (12%) – 16.56 (13.8%)
Incorrect ethical considerations are discussed. However considerations discussed are logical
Points Range:16.8 (14%) – 18.96 (15.8%)
Work begins to identify the correct ethical considerations. More detail is needed.
Points Range:19.2 (16%) – 21.36 (17.8%)
Work identifies the correct ethical considerations with sufficient detail
Points Range:21.6 (18%) – 24 (20%)
Work identifies the correct ethical considerations and the explanation is logical and well supported.
ACC100-A1-3
3.What are the negative impacts that can happen if you do not follow Lisa Infante’s instructions to wait one more day to post the balance?
Points Range:0 (0%) – 14.16 (11.8%)
Student did not submit the assignment or did not address the question
Points Range:14.4 (12%) – 16.56 (13.8%)
Incorrect negative impacts are discussed. However the impacts discussed are logical
Points Range:16.8 (14%) – 18.96 (15.8%)
Work begins to identify the correct negative impacts. More detail is needed.
Points Range:19.2 (16%) – 21.36 (17.8%)
Work identifies the correct negative impacts with sufficient detail
Points Range:21.6 (18%) – 24 (20%)
Work identifies the correct negative impacts and the explanation is logical and well supported.
ACC100-A1-4
4.Who will be negatively impacted if you do comply?
Points Range:0 (0%) – 10.62 (8.85%)
Student did not submit the assignment or did not address the question
Points Range:10.8 (9%) – 12.42 (10.35%)
Incorrect individuals or firms are discussed. However the individuals discussed are logical
Points Range:12.6 (10.5%) – 14.22 (11.85%)
Work begins to identify the correct individuals or firms. More detail is needed.
Points Range:14.4 (12%) – 16.02 (13.35%)
Work identifies the correct individuals or firms with sufficient detail
Points Range:16.2 (13.5%) – 18 (15%)
Work identifies the correct individuals or firms and the explanation is logical and well supported.
ACC100-A1-5
5.What is one alternative that you could pursue in this scenario?
Points Range:0 (0%) – 10.62 (8.85%)
Student did not submit the assignment or did not address the question
Points Range:10.8 (9%) – 12.42 (10.35%)
Incorrect or unethical alternative is discussed. However the alternative discussed is logical
Points Range:12.6 (10.5%) – 14.22 (11.85%)
Work begins to identify the correct ethical alternative. More detail is needed.
Points Range:14.4 (12%) – 16.02 (13.35%)
Work identifies the correct ethical alternative with sufficient detail
Points Range:16.2 (13.5%) – 18 (15%)
Work identifies the correct ethical alternative and the explanation is logical and well
ACC100-A1-6
6.Grammar/mechanics and formatting
Points Range:0 (0%) – 7.08 (5.9%)
Student did not submit the assignment or there are so many errors that work is confusing to read. APA formatting and citation not attempted
Points Range:7.2 (6%)- 8.28 (6.9%)
Multiple errors (7-8) in grammar, formatting and APA citation.
Points Range:8.4 (7%)- 9.48 (7.9%)
Several errors (5-6) in grammar, formatting and APA citation.
Points Range:9.6 (8%)- 10.68 (8.9%)
A few errors (3-4) in grammar, formatting and APA citation.
Points Range:10.8 (9%) – 12 (10%)
Minimal (0-2) errors in grammar, formatting and APA citation.
NAME:ACC 100 WEEK 9 ASSIGNMENT: ETHICS IN ACCOUNTING
Description:ACC 100 Week 9 Assignment: Ethics in Accounting
Solution Preview
What is the accounting problem that the Linbarger Company faces? The company has not yet reached its required amount of $ 200,000 in compliance with the agreement they have with the Insurance company and their cash closing balance at the end of the month is at $80,000 despite having a cheque from their customer of $150,000 in transit, hence the major problem would indeed be the cash management of the company and finding solutions for their short-term problems would be advisable(Sarlak,2008).
(554 words)