When the CEO confronts the CFO about the possibility that the payment that Bexhill received from Okoli was unethical, the CFO responds by saying that nothing about the transaction was illegal
Which of the following assumptions does this defense rest on?
A) Nigerian laws differ from U.S. laws covering cases like these.
B) U.S. laws pertain only to transactions between U.S. companies.
C) Bexhill's business dealings are always approved by one or more executives.
D) Okoli's executives had full knowledge of the transaction.
E) Any activity that is legal is also ethical.
Answer: E
Explanation: E) If legality were the only test for ethicality, then ensuring that the law is not broken would be all that it took to decide that a given activity was ethical. Choice A: This assumption is not necessary since the transaction could be both legal and ethical if U.S. and Nigerian laws on the subject were the same. Choice B: This assumption is not necessary since the transaction could be both legal and ethical even if U.S. laws covered it. Choice C: This assumption is not necessary since the transaction could be both legal and ethical even if executives had not specifically approved it. Choice D: This assumption is not necessary since the transaction could be both legal and ethical even if Okoli's executives did not have full knowledge of the transaction.
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What will be an ideal response?
On September 12, Vander Company sold merchandise in the amount of $9200 to Jepson Company, with credit terms of 3/10, n/30. The cost of the items sold is $5700. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:
A.
| Cash | 8924? | |
| Accounts receivable | 8924? |
B.
| Accounts payable | 9200? | |
| Purchases discounts | 276? | |
| Cash | 8924? |
C.
| Accounts payable | 9200? | |
| Merchandise inventory | 276? | |
| Cash | 8924? |
D.
| Cash | 8924? | |
| Purchases discounts | 276? | |
| Accounts payable | 9200? |
E.
| Purchases | 8924? | |
| Cash | 8924? |
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Inventory of finished goods on hand at the beginning of the quarter is 4,000 units. The company desires to maintain ending inventory equal to beginning inventory plus 1,000 units every month. Calculate the quantity to be produced during the quarter.
Stratosphere, Inc. has the following budgeted sales for the next quarter.
