Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 18

In a Duke University survey of 400 corporate financial executives, two out of five said they would use legal ways to book revenues early if that would help them meet earnings targets. More than one in five would adjust certain estimates or sell investments to book higher income. Comment on the ethics of both of these statements by the financial executives in the Duke survey.

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Ethics:

Ethics in the accounting profession is defined as guidelines and principles. It includes laws and standards of behavior.