Ethical Behavior: Case Study

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Stockholders: - A stakeholder is anyone who can affect or is affected by an association, planning or project. They can be inner or outside and they can be at senior or junior levels. In a given case internal and external stakeholder’s are Internal Stakeholders 1) Samuel (Share Holder) 2) Workers External Stakeholders 1) Jerry Finney 2) Suppliers 3) Consumers or Customers 4) Society 5) Government 6) Creditors Part B) Ethical Behaviour: - In my opinion, Samuel did not act ethically in not revealing fully his reason for selling the business. Samuel this act showed he tried to cheat and fraud with Jerry Finney.…show more content…
Along these lines, if money is spent on a thing which will be utilized as a part of business for a long time, it won't be legitimate to charge the amount from the revenue of the year in which the thing is gained. Just a part of the amount is appeared as expense in the year of purchase and the rest of the adjustment is appeared as an asset. Accrual Concept: - The importance of accrual is something that become due particularly an amount of cash that is yet to be paid or gotten toward the finish of the accounting period. It implies that revenue is perceived when they wind up plainly receivable. In spite of the fact that money is gotten or not gotten and the revenue are perceived when they end up plainly payable however money is paid or not paid. The two transactions will be recorded in the accounting time frame to which they relate. Thusly, the accrual concept creates a distinction between the accrual receipt of money what's more, the privilege to get money as respects revenue and real amount of money what's more, commitment to pay money as respects expenses. Money Measurement Concept: - This idea accepts that all business transactions must be as far as money that is in the money of a country. In our country such exchanges are as far as…show more content…
This discount is given in return for the purchaser paying the invoice before than the actual payment date of the invoice. There are two reasons why a vender may make this offer: To get prior utilization of money, which might be essential if the vender is less of money; or To offer a discount for a prompt cash payment out request to completely evade the exercise of billing the client. Difference between Trade discount and Cash discount Trade discount 1. Trade discount is a deduction allowed by a provider of merchandise/services on the list or catalogues costs of the products provided. 2. It is given because of business thought, for example, business practice, vast amount orders, and so forth. 3. Trade discount isn't independently appeared in the books of account, and all amount recorded in a purchase or sales book are done in the net sum as it were. 4. Trade discount is permitted on both credit and money Transactions. 5. Trade discount is given based on a purchase. Example of Trade discount: - 10 I Phones were purchased by ABC Pvt Ltd with a 5% trade discount on the list price of 5000 each. Total list price = 5000 x 10 = 50000 Total discount = 5% of 50000 =

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