The ethical dilemma question for this week takes advantage of the accounting cycle because part of our closing process for the year is resetting all revenue and expense accounts to zero when we move the net effect from our Income Statement (the net income or net loss) into retained earnings on the balance sheet.

While you continue to discuss the questions this prompt raised, I want to bring up another concept: segregation of duties.

What is segregation of duties? And why would it help in this instance?