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Ch. 12_ED - image of the company to investors It would make...

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Ethical Dilemma First of all, the act of changing accounting principals for an immediate boost in net income is not ethical. Changes in accounting practices can only occur if it shows the change in a “fair” light, which means it can’t push up net income or drop expenses. Selling a portion of the business to pad net income is also unethical, as it gives a distorted
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Unformatted text preview: image of the company to investors. It would make it seem that the company was much more successful in the current year, while in reality they weren’t doing so well. Basically any act that makes in investor “think” that the company is doing well when is actually isn’t is a great indication of if it is morally right or wrong....
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