Question

HELP! I don't know what to answer.

At the end of the current month, Steve prepared a trial balance for his company. The credit side of the trial balance exceeds the debit side by a significant amount. Steve has decided to add the difference to the balance of the miscellaneous expense account in order to complete the preparation of the current month's financial statements by a 5 o'clock deadline. He will look for the difference next week when he has more time.

Discuss whether Steve is behaving in a professional manner.

Answer 1

In the current scenario , It comes out to be the following problems

1. Trails balance doesn't match

2. the excess is added to miscellaneous expense account.

3. Deadline for current month's financial statements is 5'o' clock.

The question comes here is that whether Steve is behaving in a professional manner?

The answer to which is "absolutely not".

As Steve isn't able to match trail balance which has been due to not using proper due diligence was posting the transaction and after that to save himself is adding the excess amount to miscellaneous expense account as it will result in misrepresentation of financial statements . Moreover , It brings to notice that , there have been chances where same thing of action has been done earlier by him too. .