Paper Topic:
ETHICS CASE
ETHICS The stocks and the market value had been tripled in the following years and the company had gained its status , but the sales dipped and the company faced a dark period in the current year . The profits were not rising and therefore a solution was to be taught to overcome the situation . The liabilities were recorded previously because this helps the business to record all the payments of the year at the time Recording the sale of the membership hand on hand reduces the chance of missing any kind of errors
in the fiscal report . When a high degree of uncertainty exists concerning the collection of receivables , revenue should not be recorded at the time of sale . Instead , unearned revenue - a liability - should be recorded . With the high degree of uncertainty surrounding the sales of outdoor , it would be very hard to justify recording sales revenue when memberships are signed . The money which has been received should be recorded to ensure the inflow of money in the business and the money which is to be returned should not be recorded because the money cannot be invested in the business and loans cannot be taken against that money . The proposal is ethical as the proposal is according to the rules of the business . The liabilities if are noted when they are assigned it will be recorded as earned revenue will be not the revenue of the firm because the membership is not confirmed and it can be signed up also...
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