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Accounting: ethical v legal obligation

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1. With regard to financial and accounting procedures, is there a difference between what you are ethically obligated to do and legally obligated to do? Give an example and be specific.

2. What is the interrelationship among the four financial statements? Explain and articulate the relationships between the financial statements.

3. What methods have we learned about that are used to analyze an organization's financial condition and performance? How will you use these analyzing tools in your career?

4. We have learned about the value of understanding a company's financial statements in order to make informed business decisions. We have also learned about financial ratios and trend analysis. How do the two areas work in concert together to help paint the overall financial picture of a corporation's health?

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The response addresses the queries posted in 972 Words, APA References

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The response addresses the queries posted in 972 Words, APA References
Finance

1.

No, there is no difference between ethically obligated and legally obligated to do in regard to financial and accounting procedures because there is equal importance of taking care of ethical and legal obligations. Assuring the just and equilibrated financial and accounting functions of reporting the financial statements is a part of organization's affairs with the public; it causes the same procedures of the financial statements under legal and ethical obligation.

The various legal organizations, such as Securities and Exchange Commission (SEC), Financial Accounting Standards Board (FASB), etc. provide the standards of financial and accounting procedures and reporting in order to provide guidance and education to the public and also assist the various stakeholders while asserting the ethical and moral integrity. The main aim of all the legal standards is to provide the fair and precise financial information in order to fulfill the requirement of the stakeholders or users i.e. relevant information for lucid investment and decisions related to the credit, etc.

The ethical standards reflect that financial and accounting procedures must be accurate, brief and complete and it is vital for the organization. Because of this, various legal organizations i.e. SEC and FASB set the benchmarks for financial statement exposé in order to check that standards and ethics are applied to a higher degree of level and also meet the objective of complete and precise disclosure of financial information in order to support their decisions (Ewton, 2006). For example: The company's revenues and expenses must match against each other, so that it furnishes the true or ...

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  • BBA, University of Rajasthan
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