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Identify several courses of action that Tamira could have taken instead of the one she took.

Business and Finance

Business and Finance

Identify several courses of action that Tamira could have taken instead of the one she took.

Discussion 2

 

On January 20, 2017, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton’s obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company’s performance and financial position for the fiscal period ended December 31, 2016. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.

 

Required

 

1. Identify several courses of action that Tamira could have taken instead of the one she took.

2. If you were in Tamira’s situation, what would you have done? Briefly justify your response.

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