Baker products shipped an order to a customer on the second day of January. Later that day, the sales manager told the accountant to record the sale as if it had taken place on the last day of December. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Because the transaction was a legitimate sale, the alteration of the date of sale alone would not be considered unethical.

Question

Quizplus · Accepted Answer

The alteration of the date of sale to boost year-end profit is a form of financial statement fraud and is considered unethical. While the sale itself may be legitimate, intentionally misrepresenting the date of the sale for financial gain is not in line with ethical business practices.

Baker Products Shipped an Order to a Customer on the Second