What is the accounting problem that the Linbarger Company Faces?
Keeping the cash receipt book open to overstate the cash balance is fraud and unethical actions. The company has a cash management problem. They don’t have enough liquid cash to fulfill the promise that they made in their loan contracts. What are the ethical considerations in this case? Provide rationale for why these are ethical considerations.
The ethical considerations in this case are that they are not being honest and professional about the situation. Keeping the book open and not being honest about the situation of overstating the cash balance is unethical. It is a case of fraud also deceitful. Lisa’s behavior as a financial vice president should not be tolerated