The primary ethical issue in United Thermostatic Controls is:
A) Misappropriation of corporate assets
B) Accelerating the recording of revenue into an earlier period
C) Delaying the recording of expenses into a later period
D) Failure to fully disclose all information

Question

Quizplus · Accepted Answer

Accelerating the recording of revenue into an earlier period is the primary ethical issue in United Thermostatic Controls. This is a violation of the matching principle, which requires that expenses are recognized in the same period as the revenue that they help generate. This can lead to misleading financial statements and may result in inflated profits, which can mislead investors and creditors.

The Primary Ethical Issue in United Thermostatic Controls Is