Need a paper 2-3 pages

timer Asked: Jun 1st, 2018
account_balance_wallet $15

Question description

In this paper the professor would like for the paper to be written as flows question then answer, next question then answer. I you have any question please let me know

Assignment: Ethics in Accounting Due Week 9 and worth 120 points Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting. Instructions: Read the following scenario. Answer the questions that follow. Your answers should result in a 2-3 page submission. Reference back to your text book for guidance on how to think through the scenario. Scenario: Imagine you are the assistant controller in charge of general ledger accounting at Linbarger Company. Your company has a large loan from an insurance company. The loan agreement requires that the company’s cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000. You give this update to Lisa Infante, the financial vice president. Lisa is nervous and instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, “If we don’t get that cash balance over $200,000, we’ll default on our loan agreement. They could close us down, put us all out of our jobs!” Lisa continues, “I talked to Oconto Distributors (one of Linbarger’s largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we’ll be in the clear. It’s in the mail!” Questions What is the accounting problem that the Linbarger Company faces? What are the ethical considerations in this case? Provide rationale for why these are ethical considerations. What are the negative impacts that can happen if you do not follow Lisa Infante’s instructions to wait one more day to post the balance? Who will be negatively impacted if you do comply? Provide a rationale for why these individuals will be impacted. What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.

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School: UIUC



Ethics in Accounting
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What is the accounting problem that the Linbarger Company faces?
The accounting problem that Linbarger Company is facing is that it is low on its account
balance. The company has a huge loan with an insurance company which requires the company
not to maintain a cash account balance of below $200,000. On the month of June however, the
company’s closing balance is $80,000 which is below the minimum required accounting balance.
This could have effect on Linbarger’s loan agreement if the insurance company finds out. The
insurance company could lead to closure of Linbarger Company and termination of all the
employees of the company.
What are the ethical considerations in this case? Provide rationale for why these are ethical

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Awesome! Exactly what I wanted.

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