All Related Questions of Ethical Dilemma

Q: Marvin Company is a subsidiary of Hughes Corp. The controller believes

Marvin Company is a subsidiary of Hughes Corp. The controller believes that the yearly allowance for doubtful accounts for Marvin should be 2% of net credit sales. Given the recession and the high i...

Q: Nancy Tercek, the financial vice president, and Margaret Lilly,

Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2014 and 2015. The finan...

Q: The executive officers of Rouse Corporation have a performance-based compensation

The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criterion of this plan is linked to growth in earnings per share. When annual EPS growth is 12%,...

Q: Barbara Whitley had great expectations about her future as she sat in

Barbara Whitley had great expectations about her future as she sat in her graduation ceremony in May 2010. She was about to receive her Master of Accountancy degree, and next week she would begin her...

Q: Rudolph Corp. is a subsidiary of Hundey Corp. The ethical

Rudolph Corp. is a subsidiary of Hundey Corp. The ethical accountant, working as Rudolph's controller, believes that the yearly charge for doubtful accounts for Rudolph should be 2% of net credit sale...

Q: Horizon Corporation manufactures personal computers. The company began operations in 2013

Horizon Corporation manufactures personal computers. The company began operations in 2013 and reported profits for the years 2013 through 2016. Due primarily to increased competition and price slashin...

Q: Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals

Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development (R&D) expenditures are made for the development of new drugs and the improvement of ex...

Q: In 2017 the Moncrief Company purchased from Jim Lester the right to

In 2017 the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the gros...

Q: Danville Bottlers is a wholesale beverage company. Danville uses the FIFO

Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

Q: Danville Bottlers is a wholesale beverage company. Danville uses the FIFO

Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

Q: Suppose a firm has a book balance of $2 million.

Suppose a firm has a book balance of $2 million. At the automatic teller machine (ATM), the cash manager finds out that the bank balance is $2.5 million. What is the situation here? If this is an ongo...

Q: Divide into groups of three or four. Each group must select

Divide into groups of three or four. Each group must select one of the organizational departments featured in this chapter (HR, R&D, marketing, sales, and finance) and document the potential areas for...

Q: What would you do if your resolution of an ethical dilemma turned

What would you do if your resolution of an ethical dilemma turned out to be the wrong approach and it actually made things worse?

Q: The executive officers of Rouse Corporation have a performance-based compensation

The executive officers of Rouse Corporation have a performance-based compensation plan. The performance criteria of this plan is linked to growth in earnings per share. When annual EPS growth is 12%,...

Q: The following story is true except that all names have been changed

The following story is true except that all names have been changed and the time period has been compressed: Charles Austin graduated from a prestigious business school and took a job in a public acco...

Q: “I was very upset that there’s that many dishonest people,”

“I was very upset that there’s that many dishonest people,” said Andrea Reuland, the owner of Trigs Shell Station in Minocqua, Wisconsin. She lost $3 per gallon on 586 gallons of gas sold during a 45-...

Q: Assume you were recently hired as a staff accountant for Advanced Energy

Assume you were recently hired as a staff accountant for Advanced Energy Solutions, Inc. You report to Tina, the director of financial reporting, who in turn reports to the CFO. One of your first assi...

Q: “Oh no, not Store 51,” Avis Love moaned under

“Oh no, not Store 51,” Avis Love moaned under her breath. For the third time, Avis compared the dates listed in the cash receipts journal with the corresponding dates on the bank deposit slips. Avis s...

Q: Manager: If I can reduce my costs by $40,

Manager: If I can reduce my costs by $40,000 during this last quarter, my division will show a profit that is 10% above the planned level, and I will receive a $10,000 bonus. However, given the projec...

Q: Suppose a firm has a book balance of $2 million.

Suppose a firm has a book balance of $2 million. At the automatic teller machine (ATM), the cash manager finds out that the bank balance is $2.5 million. What is the situation here? If this is an ongo...

Q: A common ethical dilemma used to distinguish between philosophical reasoning methods is

A common ethical dilemma used to distinguish between philosophical reasoning methods is the following. Imagine that you are standing on a footbridge spanning some trolley tracks. You see that a runawa...

Q: Another ethical dilemma deals with a runaway trolley heading for five railway

Another ethical dilemma deals with a runaway trolley heading for five railway workers who will be killed if it proceeds on its present course. The only way to save these people is to hit a switch that...

Q: Reprinted with permission from “The Parable of the Sadhu,” by

Reprinted with permission from “The Parable of the Sadhu,” by Bowen H. McCoy, Harvard Business Review. Copyright © Harvard Business Publishing. Last year, as the first participant in the new six-month...

Q: Evaluating an Ethical Dilemma You are a member of the board of

Evaluating an Ethical Dilemma You are a member of the board of directors of a large company that has been in business for more than 100 years. The company is proud of the fact that it has paid dividen...

Q: As its year-end approaches, it appears that Mendez Corporation’s

As its year-end approaches, it appears that Mendez Corporation’s net income will increase 10% this year. The president of Mendez Corporation, nervous that thestockholders might expect the company to s...

Q: Marvin Company is a subsidiary of Hughes Corp. The controller believes

Marvin Company is a subsidiary of Hughes Corp. The controller believes that the yearly allowance for doubtful accounts for Marvin should be 2% of net credit sales. The president, nervous that the pare...

Q: Nancy Tercek, the financial vice president, and Margaret Lilly,

Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2012 and 2013. The finan...

Q: Chris smiled as he received the analysis packet from his supervisor.

Chris smiled as he received the analysis packet from his supervisor. He worked from home three days a week, and when he received an assignment he did not know how to analyze, he would call one of his...

Q: Perform an ethical analysis of Facebook. What is the ethical dilemma

Perform an ethical analysis of Facebook. What is the ethical dilemma presented by this case?

Q: Suppose a firm has a book balance of $2 million.

Suppose a firm has a book balance of $2 million. At the automatic teller machine (ATM), the cash manager finds out that the bank balance is $2.5 million. What is the situation here? If this is an ongo...

Q: As assistant controller for a small consulting firm, you are responsible

As assistant controller for a small consulting firm, you are responsible for recording and posting the daily cash receipts and disbursements to the ledger accounts. After you have posted the entries,...

Q: Listum & Sellum Inc. is a medium-sized midwestern real

Listum & Sellum Inc. is a medium-sized midwestern real estate company. It was founded five years ago by its two principal stockholders, Willie Listum and Dewey Sellum. Willie is president of the c...

Q: As controller of a widely held public company, you are concerned

As controller of a widely held public company, you are concerned with making the best decisions for the stockholders. At the end of its first year of operations, you are faced with the choice of metho...

Q: Patterson Company is a large diversified business with a unit that sells

Patterson Company is a large diversified business with a unit that sells commercial real estate. As a company, Patterson has been profitable in recent years with the exception of the real estate busin...

Q: As assistant controller of Midwest Construction Company, you are reviewing with

As assistant controller of Midwest Construction Company, you are reviewing with your boss, the controller, Dave Jackson, the financial statements for the year just ended. During the review, Jackson re...

Q: Bunch o’ Balloons markets balloon arrangements to companies that want to thank

Bunch o’ Balloons markets balloon arrangements to companies that want to thank clients and employees. Bunch o’ Balloons has a unique style that has put it in high d...

Q: Jen Latke is an accountant for Hale’s Manufacturing Company. Hale’s has

Jen Latke is an accountant for Hale’s Manufacturing Company. Hale’s has entered into an agreement to lease a piece of equipment from EZ Leasing. Jen must decide how...

Q: Jim Brock was an accountant with Hubbard Inc., a large corporation

Jim Brock was an accountant with Hubbard Inc., a large corporation with stock that was publicly traded on the New York Stock Exchange. One of Jim’s duties was to manage the corporate...

Q: Mega Enterprises is in the process of negotiating an extension of its

Mega Enterprises is in the process of negotiating an extension of its existing loan agreements with a major bank. The bank is particularly concerned with Mega’s ability to generate s...

Q: Viva Vacations operates in Tampa, Florida. The company sells time

Viva Vacations operates in Tampa, Florida. The company sells time shares and also manages residential properties that it rents to vacationers. Due to the large dip in the real-estate market the last f...

Q: Marvin Company is a subsidiary of Hughes Corp. The controller believes

Marvin Company is a subsidiary of Hughes Corp. The controller believes that the yearly allowance for doubtful accounts for Marvin should be 8% of gross accounts receivable. Given the recession and the...

Q: Nancy Tercek, the financial vice president, and Margaret Lilly,

Nancy Tercek, the financial vice president, and Margaret Lilly, the controller, of Romine Manufacturing Company are reviewing the financial ratios of the company for the years 2017 and 2018. The finan...

Q: What is meant by the term ethical dilemma? Describe an ethical

What is meant by the term ethical dilemma? Describe an ethical dilemma that you have faced.

Q: The controller of Diaz Co. believes that the yearly allowance for

The controller of Diaz Co. believes that the yearly allowance for doubtful accounts for Diaz Co. should be 2% of its accounts receivable balance at the end of the year. The president of Diaz Co., nerv...

Q: a. Check out the post titled “AIS coverage in professional

a. Check out the post titled “AIS coverage in professional exams” on my AIS blog (http:// bobhurtais.blogspot.com/). It spells out the topics you’ve studied in your AIS course elative to the CPA exam....

Q: Go to www.catholic.org, www.lds.

Go to www.catholic.org, www.lds.org, www.scientology.org, and www.baptist.org. Each of these sites expresses thoughts about religion and religious freedom. What techniques do the sites use to stimulat...

Q: Suppose a firm has a book balance of $2 million.

Suppose a firm has a book balance of $2 million. On the bank’s website, the cash manager finds out that the bank balance is $2.5 million. What is the situation here? If this is an ongoing situation, w...

Q:  “Information asymmetry lies at the heart of the ethical dilemma

 “Information asymmetry lies at the heart of the ethical dilemma that managers, stockholders, and bondholders confront when companies initiate management buyouts or swap debt for equity.” Comment on t...

Q: Rudolph Corp. is a subsidiary of Huntley Corp. and follows

Rudolph Corp. is a subsidiary of Huntley Corp. and follows IFRS. The ethical accountant, working as Rudolph’s controller, believes that the yearly charge for doubtful accounts for Rudolph should be 2%...

Q: Suppose that you share a ride to a client with another audit

Suppose that you share a ride to a client with another audit staff member. Your colleague proposes that you both submit mileage reimbursement requests for each day of the audit even though you share r...

Q: Barbara Whitley had great expectations about her future as she sat in

Barbara Whitley had great expectations about her future as she sat in her graduation ceremony in May 2018. She was about to receive her Master of Accounting degree, and in the next week she would begi...

Q: A large U.S. multinational that provides field services to

A large U.S. multinational that provides field services to energy companies worldwide operates in approximately 50 countries and employs nearly 85,000 people. While very profitable, this company has h...

Q: Jim Hopler is operations manager for a local office of a top

Jim Hopler is operations manager for a local office of a top-ranked full-service brokerage firm. With increasing competition from both discount and online brokers, Jim’s firm has redirected attention...

Q: Sarah Potterman, a doctoral student in educational psychology, is researching

Sarah Potterman, a doctoral student in educational psychology, is researching the effectiveness of various interventions recommended to help children with learning disabilities improve their reading s...

Q: Mount Ashland Promotions Inc. is organizing one of its most popular

Mount Ashland Promotions Inc. is organizing one of its most popular events, the ZenNaturals Annual Trade Fest. At this trade show, producers, manufacturers, and distributors in the natural foods marke...

Q: Beth Tully owns Zenna’s Café, an independent coffee shop located in

Beth Tully owns Zenna’s Café, an independent coffee shop located in a small Midwestern city. Since opening Zenna’s in 2002, she has been steadily growing her business and now distributes her custom co...

Q: Rebekkah Greene, owner of Up with Life Café and Marketplace,

Rebekkah Greene, owner of Up with Life Café and Marketplace, is a true believer in the health and healing benefits of food. She offers her customers pure, wholesome, and locally sourced products. Rece...

Q: Fabrizio Rivetti is an entrepreneur who has recently started a wine importing

Fabrizio Rivetti is an entrepreneur who has recently started a wine importing business. While he currently has an exclusive relationship with only one premier winery in Tuscany, he is hoping to expand...

Q: Kurt Williams was about to open a new SEP IRA account and

Kurt Williams was about to open a new SEP IRA account and was interested in exploring various investment options. Although he had some ideas about how to invest his money, Kurt thought it best to seek...

Q: Green River Army Depot’s main business is the repair and refurbishment of

Green River Army Depot’s main business is the repair and refurbishment of electronics, mainly satellite and communication systems, in partnership with the Department of Defense (DOD). Recently, DOD ha...

Q: The Lackawax River Group is interested in applying for state funds to

The Lackawax River Group is interested in applying for state funds to continue their restoration and conservation of the Lackawax River, a river that has been polluted from years of industry and agric...

Q: The need for senior care businesses that offer companionship and nonmedical home

The need for senior care businesses that offer companionship and nonmedical home services is increasing as the U.S. population continues to age. One such franchise, Independent Senior Care, tries to s...

Q: Gold Key Agency is a regional real estate brokerage firm that features

Gold Key Agency is a regional real estate brokerage firm that features properties in northern Pennsylvania and southern New York. Ann Sheridan has been with the agency for about five years, working ou...

Q: It has been three years since Mohammed Al-Tamimi opened his

It has been three years since Mohammed Al-Tamimi opened his computer repair business, Mo’s Mending Station. Unlike the well-known Nerd Squad of the big electronics retailer, Mo’s Mending Station fixes...

Q: It has been three years since Mohammed Al-Tamimi opened his

It has been three years since Mohammed Al-Tamimi opened his computer repair business, Mo’s Mending Station. Unlike the well-known Nerd Squad of the big electronics retailer, Mo’s Mending Station fixes...

Q: Many retailers have recognized the importance of staying connected to their in

Many retailers have recognized the importance of staying connected to their in-store customers via the Internet. Retailers not only use the Internet to inform their customers about specials and promot...

Q: Joan Martinez is just beginning her third year as dean of the

Joan Martinez is just beginning her third year as dean of the business school at a small regional university in the midwest. When she joined, the university’s president and academic provost expressed...

Q: Forever Youthful, Inc., specializes in products that contain biologically active

Forever Youthful, Inc., specializes in products that contain biologically active ingredients with anti-aging properties often referred to as “cosmeceuticals.” Forever Youthful, Inc., has been exclusiv...

Q: GoLearn is a new social networking site designed mainly for college students

GoLearn is a new social networking site designed mainly for college students who have an interest in study abroad. Students from both within and outside the United States are beginning to join, althou...

Q: Most people older than 40 remember chia seeds as the source of

Most people older than 40 remember chia seeds as the source of “green hair” for a variety of animal-shaped terra-cotta figurines. While chia pets are still available (there is even one resembling Pres...

Q: Alpine Medical Systems, Inc., is a large provider of medical

Alpine Medical Systems, Inc., is a large provider of medical equipment and supplies to hospitals, doctors, clinics, and other health care professionals. Alpine’s VP of Marketing and Sales, Kenneth Jad...

Q: Fred Barolo heads a travel company that offers, among other services

Fred Barolo heads a travel company that offers, among other services, customized travel packages. These packages provide a relatively high profit margin for his company, but Fred worries that a weaken...

Q: Nelson Greene develops real estate in the southwestern United States. His

Nelson Greene develops real estate in the southwestern United States. His next planned project is to build a housing development on a parcel of land in New Mexico, not far from Santa Fe. However, with...

Q: With U.S. consumers becoming more environmentally conscious, there

With U.S. consumers becoming more environmentally conscious, there has been an explosion of eco-friendly products on the market. One notable entry has been the gas-electric hybrid car. A large nonprof...

Q: Trax, one of the leading manufacturers of bicycles in the United

Trax, one of the leading manufacturers of bicycles in the United States, is interested in expanding its line to include high-end road bikes. One of the features of highend bikes, and one that avid cyc...

Q: Admiral Oil & Gas Corporation, headquartered in Houston, is the

Admiral Oil & Gas Corporation, headquartered in Houston, is the most recognizable of the companies that moved into Pennsylvania to drill for gas from the Marcellus shale formation. While geologists su...

Q: AN ETHICAL DILEMMA Assume that you are the top executive for

AN ETHICAL DILEMMA Assume that you are the top executive for a firm doing business in Colombia, South America. If a known terrorist group threatens to kill your employees unless you pay extortion mon...

Q: Software Solutions is a family-owned business that has been in

Software Solutions is a family-owned business that has been in operation for more than 15 years. The board of directors is comprised of mainly family members, plus a few professionals such as an accou...

Q: Categorisation of support costs Suppose a charitable organisation called Food on

Categorisation of support costs Suppose a charitable organisation called Food on Wheels provides meals for low-income individuals who are unable to leave their homes. To support its services, it soli...

Q: In the past, drug makers have been reluctant to invest in

In the past, drug makers have been reluctant to invest in cures for diseases in developing countries such as Africa and South America. Most people in these countries cannot afford to pay for treatment...

Q: Assume that you are Dickman’s supervisor and have been informed that she

Assume that you are Dickman’s supervisor and have been informed that she is frequently away from her desk and often makes personal phone calls. The first step of using the IDDR method is inquiry, so y...

Q: One August morning, around 6:30 a.m.,

One August morning, around 6:30 a.m., a fire occurred at Ray and Christine Nixon’s home in West Monroe, Louisiana, while the Nixons were inside the home. The Nixons told Detective Gary Gilley of the O...

Q: Cameron Bly is a sales manager for an automobile dealership. He

Cameron Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue from the number of autos sold in the year less related warranty expenses. Actual warranty expen...

Q: Sevenson Environmental Services was hired to clean up a Superfund site in

Sevenson Environmental Services was hired to clean up a Superfund site in Manville, New Jersey, where the soil was contaminated with creosote. (Creosote is a flammable, oily mixture of chemical compou...

Q: Priscilla Dickman worked as a medical technologist at the University of Connecticut

Priscilla Dickman worked as a medical technologist at the University of Connecticut Health Center for twenty-eight years. Early in her career at the Health Center, Dickman sustained a back injury whil...

Q: The following is a short list of scenarios. Write a brief

The following is a short list of scenarios. Write a brief statement about whether you believe the scenario is an ethical dilemma and, if so, who will be harmed by the unethical behavior. 1. You are a...

Q: Most managers have no difficulty avoiding blatantly dishonest actions. But sometimes

Most managers have no difficulty avoiding blatantly dishonest actions. But sometimes there are gray areas, where it is debatable whether an action is unethical and unacceptable. Suggest an important e...

Q: Horizon Corporation manufactures personal computers. The company began operations in 2016

Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price slashin...

Q: You have recently been hired as the assistant controller for Stanton Industries

You have recently been hired as the assistant controller for Stanton Industries, a large, publicly held manufacturing company. Your immediate superior is the controller who, in turn, is responsible to...

Q: In 2020, the Moncrief Company purchased from Jim Lester the right

In 2020, the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the gro...

Q: Danville Bottlers is a wholesale beverage company. Danville uses the FIFO

Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

Q: Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals

Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development (R&D) expenditures are made for the development of new drugs and the improvement of ex...

Q: Danville Bottlers is a wholesale beverage company. Danville uses the FIFO

Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

Q: Oliver is a qualified accountant who is employed by Zanger, an

Oliver is a qualified accountant who is employed by Zanger, an unquoted company that manufactures electronic components. Zanger operates from a single, large factory that is the largest employer in Co...

Q: Zest Company is a Montreal HR firm. Its condensed income statement

Zest Company is a Montreal HR firm. Its condensed income statement for the year ended November 30, 2020, is shown below. The liabilities reported on the November 30, 2020, balance sheet were: Accounts...

Q: Mike Li is a sales manager for an electric car dealership in

Mike Li is a sales manager for an electric car dealership in Alberta. Mike earns a bonus each year based on revenue generated by the number of vehicles sold in the year less related warranty expenses....

Q: Briefly define what an ethical dilemma is and describe the steps to

Briefly define what an ethical dilemma is and describe the steps to consider when evaluating ethical dilemmas.

Q: Horizon Corporation manufactures personal computers. The company began operations in 2019

Horizon Corporation manufactures personal computers. The company began operations in 2019 and reported profits for the years 2019 through 2022. Due primarily to increased competition and price slashin...

Q: You have recently been hired as the assistant controller for Stanton Industries

You have recently been hired as the assistant controller for Stanton Industries, a large, publicly held manufacturing company. Your immediate superior is the controller, who, in turn, is responsible t...

Q: Danville Bottlers is a wholesale beverage company. Danville uses the FIFO

Danville Bottlers is a wholesale beverage company. Danville uses the FIFO inventory method to determine the cost of its ending inventory. Ending inventory quantities are determined by a physical count...

Q: Wolfe Computer manufactures computers and peripheral equipment. The following data relate

Wolfe Computer manufactures computers and peripheral equipment. The following data relate to Wolfe’s printer division for the year just ended. The Printer Division is evaluated as a...

Q: The Printer Division is evaluated as an investment center. Wolfe expects

The Printer Division is evaluated as an investment center. Wolfe expects all of its investment centers to earn a minimum annual return of 10 percent on average invested capital. Division managers rece...

Q: John Rodriguez and Patty Jorgenson are both cost accounting managers for a

John Rodriguez and Patty Jorgenson are both cost accounting managers for a manufacturing division. During lunch yesterday, Patty told John that she was planning on quitting her job in three months bec...

Q: John Dillworth is in charge of buying property used as building sites

John Dillworth is in charge of buying property used as building sites for branch offices of the National Bank of Commerce. Mr. Dillworth recently paid $110,000 for a site located in a growing section...

Q: Refer to the Ethical Dilemma in this chapter. What legal and

Refer to the Ethical Dilemma in this chapter. What legal and procedural factors should have prevented this abuse of position from happening? Who is ultimately responsible for this situation?

Q: Refer again to Ethical Dilemma 1. Do you think there is

Refer again to Ethical Dilemma 1. Do you think there is a way to design or redesign a job (or reward structures) so that the allocation of illegitimate tasks can be minimized? Why or why not?