=+SA 3-1 Ethics and professional conduct in business Chapter 3 The Adjusting Process 141 receivable and $15,650 in accounts payable. Cliff then instructed his accountant to record an additional $20,000 of accounts receivable for commissions on property for which a contract had been signed on December 28, 2009, but which would not be formally

“closed” and the title transferred until January 5, 2010.

Cliff then applied for a $300,000 loan from First City Bank, using the revised financial statements. On this application, Cliff indicated that he had not previously been rejected for credit.

Discuss the ethical and professional conduct of Cliff Hall in applying for the loan from First City Bank.