As the time for revenue reports is due, the projected revenues are down. The Marketing Team has made lots of sales, but the proceeds from those sales have yet to come through your office. While you know the company practices the accrual method of accounting, by posting those sales which are in the pipeline and very close to completion, you will be able to meet the company’s projections which will enhance the market position.

There are 3 options:

1. Post the sales that have not been received in order to meet projections.

2. Do not post the sales until after they have been received.

3. Post those sales which will be received within 7 days of the end of the quarter.

Questions:

1) Who is the ethical actor? Who or what group will be taking the action in this particular problem?

2) Who are the stakeholders? Who are those people and/or groups to which we owe a duty? What are the express and implied agreements that you have with each of the constituents?

3) What is the context and assumptions? What are the facts which need to be considered? In framing the context, what assumptions as to competing rights and responsibilities are present?

Answer rating: 100% (QA)

The company practices the accrual method of accounting by posting those sales which are in the pipeline and very close to completion Hence Post those sales which will be received within 7 days of the ... View the full answer