Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc.The company has a policy that all expenditures greater than $1,000 must be capitalized.Steve is under pressure from his supervisor to minimize capital expenditures less than $1,000 to keep earnings as high as possible.Steve decides to take two separate expenditures - one for $600 and the other for $900 - and he groups them into one expenditure so that the capitalization rules apply.Steve's actions can be characterized as:
A)Lacking in of moral sensitivity
B)Lacking in professional skepticism
C)Loyal to the company's best interests
D)All of the above

Question

Quizplus · Accepted Answer

Steve's actions are lacking in moral sensitivity as he is manipulating the expenditure amounts to avoid following the company policy. This is unethical behavior and could result in financial misrepresentation.

Steve Is in Charge of Accounting for the Purchase of Equipment