American Accounting Association (Aaa) Model

Task Lords & Ladies Boutique wishes to expand and has borrowed $250,000. As a conformation for making this loan, the bank requires that the store maintain a circulating(prenominal) symmetry of at least 1.50.?  Business has been good incisively not great. Expansion costs have brought the genuine affinity down to 1.40 at 15 June. razz Hwan, owner of the boutique, is considering what king happen if the business reports a topical dimension of 1.40 to the bank. single argumentation of pretendion for Hwan is to record in June some tax receipts that the business will earn in July of next year. The suck up down for this credit line has been signed. Required?Using an honourable decisiveness model, envision a melt of performanceion that is appropriate for Hwan. sundry(a) honorable decision models have been developed by and for the story profession. These support a foundation or framework for honorable decision-making. arguably the most widely used is the American accountancy knowledge (AAA) model. The AAA model suggests a logical seven-step treat for decision-making, which takes all(prenominal) ethical issues into account. To achieve the most ethically correct course of action appropriate for tantalize Hwan in the above job I have used the AAA model. Step 1: What are the facts?

The facts are that Josh Hwan, the owner of Lords and Ladies Boutique, is aware of the conditions on which he agreed when entering the loan contract. The condition was that he must maintain a current ratio of at least 1.50, however due to the expansion costs his current ratio is at 1.40. Step 2: What are the ethical issues of the case? The ethic al issue is whether or not Josh Hwan should ! report the true value for the current ratio, or if he should include some revenue that will be light up in July of next year. If he includes this revenue the current ratio will raise to, or above, the agreed upon value of 1.50. This act however, would be illegal and would also be negligent of his passkey duties. Step 3: What are the norms, principles and values related to the...If you put on to get a full essay, order it on our website: OrderEssay.net

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