ethics case 3

ethics case 3 - Scott Wetzel Acct 201 Ethics Case #3...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Scott Wetzel Acct 201 11/7/07 Ethics Case #3 Explanation of Ethical Issues The ethical issues surrounding this matter are prevalent, requiring that certain decisions be made: a. The central ethical issue in this situation is the fact that the CFO is attempting to beef up the company’s financial statements in a misleading way. In extending the depreciation period from three to fifteen months, the assets appear to last longer than they will in reality. This would yield a lower depreciation expense, and in turn a higher net income and higher book value. b. Another ethical issue that this could create involves the company’s future. By making the company look stronger than it really is, it is ensuring that it will pay back a loan that it may not be able to and also potentially letting down its stockholders. c. Whether or not the accountant extends the depreciation period brings another ethical issue. It is illegal to do what the CFO suggests, and this decision could put the company in more danger than the company was ever in to begin with. Identification of Affected Parties
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2008 for the course ACCT 201 taught by Professor Shleifer during the Spring '08 term at Clemson.

Page1 / 2

ethics case 3 - Scott Wetzel Acct 201 Ethics Case #3...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online