Question
M Company will report a net loss of $50,000 for the current year. The companys president has asked the Chief Financial Officer (CFO) to record
M Company will report a net loss of $50,000 for the current year. The companys president has asked the Chief Financial Officer (CFO) to record an additional $75,000 of revenue at the end of the year without providing supporting documentation. What is the most ethical thing to do?
Multiple Choice
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Trust the President and record the $75,000 of revenue without supporting documentation.
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To avoid reporting a net loss to investors and making the company look bad, add the $75,000 of revenue without supporting documentation.
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Only record the $75,000 of revenue in the current year if supporting documentation is provided.
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Recording the revenue without supporting documentation does not violate an ethical consideration.
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