Accounting statements can be manipulated. Each week I will have an ethical issue for you to consider. Please try to give an argument pro and con on each ethical issue. Any actual public examples you would like to cite would be most appreciated by all.

Balance sheets are from a fixed point in time. Therefore, it is possible to do window dressing on the last day of the fiscal year. This could include bringing in long term debt as cash to improve short-term financial liquidity and then repaying the loan the next day. This could include selling an asset for cash on the last day of the fiscal year and repurchasing the next day. The possibilities are endless. Further, the financial statements do accurately reflect the financial position of the corporation for the day in question. Nevertheless, is this ethical? What is the distinction between unethical and illegal?

There is no case to reference.