Question
Janet Fox, President of Angel Co., went to a tax seminar. One of the speakers at the seminar advised the audience to put off showing
Janet Fox, President of Angel Co., went to a tax seminar. One of the speakers at the seminar advised the audience to put off showing expenses until next year because doing so would allow them to take advantage of a new tax law. When Janet returned to the office, she called in her accountant, Frieda ORiley. She told Frieda to forget about making any adjustments for salaries in the old year so that more expenses could be shown in the new year. Frieda told her that putting off these expenses would not follow generally accepted accounting principles (GAAP). Janet said she should do it anyway. You make the call. Is this the right thing to do? Why or why not?
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