The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company.As long as the amount of the misstatement was not material,this would not be considered unethical behavior.

Question

Quizplus · Accepted Answer

Deliberately recording operating expenses as operating assets is a violation of accounting principles and is considered unethical behavior regardless of the materiality of the misstatement. It overstates the company's assets, profits, and financial health, leading to inaccurate financial reporting and misguide stakeholders. The accountant must report the expenses as expenses and not assets, regardless of the impact on net income.

The Accountant for Myra Lido Deliberately Recorded Operating Expenses as Operating