In the Capitalization versus Expensing case the main ethical issue is whether Gloria Hernandez should:
A) Capitalize or expense $1 million of expenditures
B) Report her superiors' actions to the CEO
C) Talk to the audit committee about the pressure imposed by her supervisor
D) Become a whistle blower

Question

Quizplus · Accepted Answer

The main ethical issue in this case is whether to capitalize or expense $1 million of expenditures. Gloria Hernandez should carefully consider the principles of accounting and make a decision that is in compliance with the accounting standards and principles. She should not be influenced by her supervisor's pressure or any personal interests. Therefore, choosing either option B, C, or D is not appropriate in this situation.

In the Capitalization Versus Expensing Case the Main Ethical Issue