Discussion Ethics and professional conduct in business

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Prompt:

Laser Graphics is a graphics art design consulting firm. Spencer Lowry, its treasurer and vice president of finance, has prepared a classified balance sheet as of March 31, 2014, the end of its fiscal year. This balance sheet will be submitted with Laser Graphics’ loan application to American Trust & Savings Bank.

In the Current Assets section of the balance sheet, Spencer reported a $90,000 receivable from

Jackie Doyle, the president of Laser Graphics, as a trade account

receivable. Jackie borrowed the money from Laser Graphics in April 2012

for a down payment on a new home. She has orally assured Spencer that she will pay off the account receivable within the next
year. Spencer reported the $90,000 in the same manner on the preceding year’s balance sheet.

Evaluate whether it is acceptable for Spencer to prepare the March 31, 2014, balance sheet in the manner indicated above.

Discussion 200 words

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