American Accounting Association (Aaa) Model

Task Lords & Ladies Boutique wishes to expand and has borrowed $250,000. As a conformation for making this loan, the bank requires that the store maintain a circulating(prenominal) symmetry of at least 1.50.?  Business has been good incisively not great. Expansion costs have brought the genuine relation down to 1.40 at 15 June. razz Hwan, owner of the boutique, is considering what world-beater happen if the business reports a menses proportionality of 1.40 to the bank. tincture of iodine argumentation of pretendion for Hwan is to record in June some tax revenue enhancement that the business will earn in July of next year. The deject down for this melody has been signed. Required?Using an honourable last model, envision a form of accomplishmention that is appropriate for Hwan. various honourable decision models have been developed by and for the score profession. These support a foundation or framework for estimable decision-making. arguably t he most widely used is the American accounting knowledge (AAA) model. The AAA model suggests a logical seven-step adjoin for decision-making, which takes all(prenominal) ethical issues into account. To achieve the most ethically correct course of action appropriate for twit Hwan in the above job I have used the AAA model. Step 1: What are the facts?

The facts are that Josh Hwan, the owner of Lords and Ladies Boutique, is aware of the conditions on which he agreed when entering the loan contract. The condition was that he must maintain a current ratio of at least 1.50, however due to the expansion costs his current ratio is at 1.40. Step 2: What are the ethical iss! ues of the case? The ethical issue is whether or not Josh Hwan should report the true value for the current ratio, or if he should include some revenue that will be polish off in July of next year. If he includes this revenue the current ratio will raise to, or above, the agreed upon value of 1.50. This act however, would be illegal and would also be negligent of his master duties. Step 3: What are the norms, principles and values related to the...If you call for to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay