If the accounting methods used are in accordance with GAAP, is management doing anything wrong by...

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If the accounting methods used are in accordance with GAAP, is management doing anything wrong by...

If the accounting methods used are in accordance with GAAP, is management doing anything wrong by choosing the ones that make their numbers look best? Why or why not?

business finance

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Answer 1

Answer #1

No, the management is not doing anything wrong as the method is approved by GAAP .

But, if the method chosen is grossly inappropriate for the situation and is misleading, then the management is doing wrong ethically.

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Answer 2

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