Paige Carter is the controller for a public organization in Nashville, TN. She has just completed a meeting with the organization's CFO, Tommy Rich. Tommy Rich tried to convince Paige to classify some inventory items as fixed assets in an attempt to depreciate more assets for the upcoming accounting reporting period. Tommy Rich's proposal would depreciate more assets by misclassifying inventory as fixed assets in an attempt to reduce net income. Paige knows it is her responsibility to ensure that all items on the organization financial statements are recorded properly as required by the Financial Accounting Standards Board (FASB) and the AICPA Code of Professional Conduct. She has a great deal of pressure to reduce net income to reduce corporate income taxes and qualify for a company bonus. She does not want to disappoint the CFO, and her job may be at stake

1. : Summarize the scenario for the CFO.
2. : Outline the advantages of accurate reporting and why inventory should or should not be classified as a fixed asset.
3. : Outline the disadvantages of accurate reporting and why inventory should or should not be classified as a fixed asset.
4. : List the major differences between inventory and fixed assets.
5. : Show the primary ways in which both classifications would affect the future of the business. Why should we classify inventory and fixed assets in the same account or separate accounts?
6. : Recommend which option they should pursue. Justify your reporting decision.
7. : Use two sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides

Answer rating: 100% (QA)

Answer As the companys controller I have the responsibility to produce a set of financial statements ... View the full answer