Accountin discussion

By Saturday, August 22, 2015, respond to both discussion prompts, and submit your responses to this Discussion Area. Start reviewing and responding to your classmates as early in the week as possible. You should review and critique the work of at least two other students in each discussion question. For assistance with any problems you may have when completing this assignment—OR—to offer your assistance to classmates, please use the Problems and Solutions Discussion area located through the left side navigation link.

Select a discussion question from the topics menu below and click the question to begin. Use the Respond link to post responses and materials that pertain to that question. To respond to an existing posting use the Respond link beneath it.

Topic
Topic 1
Topic 2

ACME Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Bill, the owner of ACME, has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases by December 31. Bill told the customers he would allow them, until the end of February, to pay for the purchases, just as if they had made their purchases in January. What do you think are the ethical implications of Bill’s actions? Which ratios will be improved by accelerating these sales?

Topic 2

Some people argue that every company, whether public or private, should be subject to the Sarbanes-Oxley Act. Currently, only public companies must follow this act. Do you feel that private companies should also have to follow the act? Discuss why or why not.