Question

Accounting professionals must sometimes choose between two or more acceptable methods of accounting for business transactions and events. Explain why these situations can involve difficult matters of ethical concerns.

Answer 1

ANSWER-

As we know that, business environment changes very frequently and day by day Manager's have to face different situations. Because of this, Managers and Accounting professionals have to practice different methods of Accounting for recording different types of business transaction and events for the accurate and reliable financial statements. Sometimes this situation create difficult matters of ethical concerns as business ethics says that all the information about each transaction occur should be recorded in correct method and identical method, so the financial statements and performance should be communicated easily. But according to different transactions and events, Managers have to choose two or more methods to record that transactions and events, by which it's effects and amount is also affected by each method. By which it creates a mess in preparation of financial statements which gives inaccuracies of financial information which is against of Ethical behaviours. This is the main reason why the adoption of different methods of Accounting creates difficult matters of ethical concerns.