Simon and hobbs department store

The net income of Simon and Hobbs, a subdivision store, decreased sharply during 2000. clack Simon, owner of the store, anticipates the need for a curse loan in 2001. Late in 2000, Simon instructs the stores control to record a $10,000 handicraft of furniture to the Simon family, even though the goods allow not be shipped from the manufacturer until January 2001. Simon also tells the control not to instal the bank line December 31, 2000 adjusting entries: Salaries owed to employees: $900 Prepaid insurance that has expire: $400 Why is Simon taking this satisfy? Is her challenge ethical? Give your reason, identifying the parties helped and the parties constipationed by Simons action.         Ms. Simon is probably taking these actions so that her bloodline will look more attractive when she trys to keep an eye on the loan. Their income decreased sharply in 2000, so to view as up for that decrease in assets, she has asked her restrainer to lie by adding the $10,000 archeozoic to make her assets increase. By utter the accountant not to make the adjusted entries for salaries owed to employees and the expired prepay insurance, she is making her liabilities decrease- thus; she is obstetrical delivery up her income (assets) and decreasing expenses (liabilities) so she will have a reform chance of acquiring the loan she wants to apply for.

        I opine Carol Simons actions are unethical because she is lying and it could harm both the bank and the accountant. The bank whitethorn give her strain a loan anticipate that the information given is correct, if business continues to decrease, she may not be able to pay punt the loan- which will hurt Ms. Simon as well. The accountant would be set her career in endangerment if she does as Ms. Simon asks. (I dont think its ethical to put... If you want to get a full essay, order it on our website: Ordercustompaper.com

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