XACC 280 Ethics Case BYP 9-6 The controller of Ruiz Co. believes that the yearly allowance for doubtful
ACC 280 Ethics Case BYP 9-6
ACC 280 BYP 9-6 The controller of Ruiz Co. CLICK HERE FOR SOLUTION
Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.
Axia College of University of Phoenix (UoP)
ACC 280 BYP 9-6 The controller of Ruiz Co. TUTORIAL
XACC 280 BYP 9-6 The controller of Ruiz Co. SOLUTION
Ethics Case BYP 9-6 The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz. co. should be 2% of net credit sales. The president of Ruiz Co., nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which reflects a 6% growth rate, will be a more sustainable rate for Ruiz Co.
Instructions:
a) Who are the stakeholders in this case?
b) Does the president's request pose an ethical dilemma for the controller?
