This a discussion board post I need to answer. Why is there an ethical dilemma when it
Fantastic news! We've Found the answer you've been seeking!
Question:
This a discussion board post I need to answer. Why is there an ethical dilemma when it comes to reporting revenue using accrual accounting? On page 49-50 of the textbook, it states that some companies utilize accrual accounting.
When using accrual accounting, revenue is reported when services are performed, "regardless of when cash is collected or paid." This type of accounting is necessary for some businesses, but it is fairly easy for some unethical practices, such as fraud, to occur, if this type of accounting is overused or used incorrectly.
For example, there may be a higher chance of mistakes made at the end of the period, like missing small transactions.
Related Book For
Management information systems
ISBN: 978-0073376813
10th edition
Authors: James A. O Brien, George M. Marakas
Posted Date: