Next, download the file Sample Data. Prepare a chart similar to the one in the downloaded file to indicate whether the correlation between Variables A and B were found to be positive, negative, or min
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.
• Refer back to your textbook 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
1. What is the accounting problem that the Linbarger Bottling Company faces?
2. What are the ethical considerations in this case? Provide rationale for why these are ethical considerations.
3. 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?
4. Who will be negatively impacted if you do comply? Provide rationale for why these individuals will be impacted.
5. What is one alternative that you could pursue in this scenario? Support your recommendations with information you learned in this class.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.
Points: 120 Assignment: Ethics in Accounting
Criteria
Unacceptable
Below 60% F Meets Minimum Expectations
60-69% D
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
What is the accounting problem that the Linbarger Bottling Company faces?
Worth 20%
Student did not submit the assignment or did not address the question. Student work identifies the incorrect problem. Problem identified is logical. Work begins to identify the correct problem. More detail is needed. Work identifies the correct problem with sufficient detail. Work identifies the correct problem and the explanation is logical and well supported.
What are the ethical considerations in this case?
Worth 20% Student did not submit the assignment or did not address the question. Incorrect ethical considerations are discussed. However, considerations discussed are logical. Work begins to identify the correct ethical considerations. More detail is needed. Work identifies the correct ethical considerations with sufficient detail. Work identifies the correct ethical considerations and the explanation is logical and well supported.
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?
Worth 20% Student did not submit the assignment or did not address the question. Incorrect negative impacts are discussed. However, the impacts discussed are logical. Work begins to identify the correct negative impacts. More detail is needed. Work identifies the correct negative impacts with sufficient detail. Work identifies the correct negative impacts and the explanation is logical and well supported.
Who will be negatively impacted if you do comply?
Worth 15% Student did not submit the assignment or did not address the question. Incorrect individuals or firms are discussed. However, the individuals discussed are logical. Work begins to identify the correct individuals or firms. More detail is needed. Work identifies the correct individuals or firms with sufficient detail. Work identifies the correct individuals or firms and the explanation is logical and well supported.
What is one alternative that you could pursue in this scenario?
Worth 15% Student did not submit the assignment or did not address the question. Incorrect or unethical alternative is discussed. However, the alternative discussed is logical. Work begins to identify the correct ethical alternative. More detail is needed. Work identifies the correct ethical alternative with sufficient detail. Work identifies the correct ethical alternative and the explanation is logical and well supported.
Grammar/mechanics and formatting
Worth 10% Student did not submit the assignment or there are so many errors that work is confusing to read. APA citation not attempted. Multiple errors (7-8) in grammar, formatting, and APA citation. Several errors (5-6) in grammar, formatting, and APA citation. A few errors (3-4) in grammar, formatting, and APA citation. Minimal (0-2) errors in grammar, formatting, and APA citation.
