By Carl S. Warren, James M. Reeve, Jonathan Duchac
The authors of ACCOUNTING, 23e, take into account that you must locate very important info fast. This textbook makes use of an built-in studying procedure that can assist you entire homework and lead you to accounting mastery. construction at the authors' confirmed strategy, transparent examples and high-impact writing advisor you thru the training of economic statements because the authors artfully offer a framework for realizing what accounting is all approximately and accounting's evolving function in company.
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Example text
These ethical violations led to fines, firings, and lawsuits. In some cases, managers were criminally prosecuted, convicted, and sent to prison. What went wrong for the managers and companies listed in Exhibit 2? The answer normally involved one or both of the following two factors: Failure of Individual Character. An ethical manager and accountant is honest and fair. However, managers and accountants often face pressures from supervisors to meet company and investor expectations. In many of the cases in Exhibit 2, managers and accountants justified small ethical violations to avoid such pressures.
Managers and employees must also behave in an ethical manner in managing and operating a business. Otherwise, no one will be willing to invest in or loan money to the business. Ethics are moral principles that guide the conduct of individuals. Unfortunately, business managers and accountants sometimes behave in an unethical manner. A number of managers of the companies listed in Exhibit 2 engaged in accounting or business fraud. These ethical violations led to fines, firings, and lawsuits. In some cases, managers were criminally prosecuted, convicted, and sent to prison.
7,900 550 20,000 h. Ϫ2,000 Bal. 5,900 550 20,000 ϭ Liabilities ϩ ϭ Owner’s Equity Accounts Chris Clark, Chris Clark, Fees Wages Rent Supplies Utilities Misc. Payable ϩ Capital Ϫ Drawing ϩ Earned Ϫ Exp. Ϫ Exp. Ϫ Exp. Ϫ Exp. Ϫ Exp. ϩ25,000 25,000 ϩ1,350 ϩ1,350 25,000 1,350 25,000 ϩ7,500 7,500 1,350 Ϫ950 400 25,000 7,500 Ϫ2,125 Ϫ800 Ϫ2,125 Ϫ800 25,000 7,500 Ϫ2,125 Ϫ800 400 400 25,000 25,000 Ϫ2,000 Ϫ2,000 7,500 Ϫ2,125 Ϫ800 Ϫ800 Ϫ800 7,500 Ϫ2,125 Ϫ800 Ϫ800 Ϫ450 Ϫ450 Ϫ275 Ϫ275 Ϫ450 Ϫ275 Ϫ450 Ϫ275 Ϫ450 Ϫ275 Chapter 1 15 Introduction to Accounting and Business You should note the following in the preceding summary: 1.