Ethics Case (2)

Ethics Case (2) - Ethics Case #2 (1) Stakeholders The...

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Ethics Case #2 (1) Stakeholders The accountant’s decisions will affect many individuals including primary stakeholders, the president of Marvin, the parent company, shareholders, and employees, and will also affect the secondary stakeholder’s, the general public. If the parent company expects the subsidiary to sustain their growth rate at 10%, the accountant’s decision on the appropriate amount of allowance will directly affect the President because he is ultimately responsible for meeting company goals. The parent, Hughes Company, will be affected by a potential increase or decrease in net income. The company will end up reporting a lower net income if they decide to make a change in the allowance accounts. Since stakeholders are interested in how a company generates and spends their cash, this decrease in income will affect them. Shareholders will be concerned if the company can generate enough cash to earn a sufficient return on their investments and be allotted dividends. The public can also be affected because net income is
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Ethics Case (2) - Ethics Case #2 (1) Stakeholders The...

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