Accounting
Not what you're looking for?
The net income of Simon and Hobbs, a department store, decreased sharply during 2000. Carol Simon, owner of the store, anticipates the need for a bank loan in 2001. Late in 2000, Simon instructs the store's accountant to record a $10,000 sale of furniture to the Simon family, even though the goods will not be shipped from the manufacturer until January 2001. Simon also tells the accountant not to make the following December 31, 2000 adjusting entries:
-Salaries owed to employees: $900
-Prepaid insurance that has expired: $400
-Why is Simon taking this action? Is her action ethical? Give your -reason, identifying the parties helped and the parties harmed by Simon's action.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
Purchase this Solution
Solution Summary
The solution does a great job of explaining the question being asked. The answer is brief and concise and is very easy to understand for anyone looking for a basic understanding of this topic. Overall, an excellent response to the question being asked.
Solution Preview
Simon's actions are not ethical at all. Net Income of Simon and Hobbs is decreasing, thus the actions that Simons is taking is to boost its net income.
The $10,000 sale of furniture will appear as a source of revenue and will increase the top ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.