Concept explainers
Introduction:
Ethics means morals implies moral rules that oversee an individual’s conduct or the directing of an action.
Internal control means an inward control is a methodology or strategy set up by the executives to shield resources, advance responsibility, increment effectiveness, and stop fake conduct. As it were, an interior control is a procedure set up to keep representatives from taking resources or submitting extortion.
Capitalization decision means Capitalization, in bookkeeping, is the point at which the expenses to procure an advantage are expensed over the life of that benefit as opposed to in the period it was brought about. In money, capitalization is the entirety of an organization’s stock, long haul obligation, and held income.
To choose:
What are the probable consequences of this behavior for the company?
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Cornerstones of Financial Accounting
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- Based on a cost-benefit analysis, management at First CommunityBank decided to contract with Technology Solutions, a local data center operator, tohost all of the bank’s financial reporting applications. To avoid the significant costsof developing and maintaining its own data center, First Community contracts withTechnology Solutions to provide IT server access in a highly secure, environmentallycontrolled data center facility owned by Technology Solutions. Similar to First Community,other businesses also contract with Technology Solutions to host applications at the samedata center.The bank is directly linked through highly secure telecommunication lines to the datacenter, which allows bank personnel to transmit data to and from the data center as if thedata center was owned by First Community. For a monthly fee, Technology Solutionssupports the server hardware in an environment with numerous backup controls in theevent power is lost or other hardware failures occur. Bank personnel…arrow_forwardAs a new controller, reply to this comment by a plant manager: “As I see it, our accountants maybe needed to keep records for shareholders and Uncle Sam, but I don’t want them sticking theirnoses in my day-to-day operations. I do the best I know how. No bean counter knows enoughabout my responsibilities to be of any use to me.”arrow_forwardThe use of information technology raises significant ethical issues such as computer crime, data security, privacy and so on. Computer ethics is the analysis of the nature and social impact of computer technology, as well as formulation of appropriate policies for the ethical use of such technology. The following statements address computer ethics, except :A. The company restricts access to external websites.B. Company policy to prevent the use of portable storage devices on work computers.C. Keep dan maintain software licenses legal and up-to-date.D. Enforces policies for employees who share information about customers on social media. Explain why you choose your answer, and not the other (in max 200 words).arrow_forward
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