Financial Reporting:
Qualitative Characteristics.
Please cite sources according to APA guidelines
In-text citation examples shown are for paraphrases and summaries (Author-Date pattern). When citing a direct quote, you will also need to include either a page number or paragraph number (Author-Date-# pattern). (Ex: In-Text Citation: (Webb & Jones, 2009)) (Ex: Reference: information a paper below. Web sites are cited differently. Webb, S. J., & Jones, E. J. H. (2009).
Early identification of autism: Early characteristics, onset of symptoms, and diagnostic stability. Infants & Young Children, 22(2), 100-118.)). .
Instructions are as followed: "Read the following scenario, and use it to help you complete your assignment that follows:
Scenario: John Wayne Company is a major employer in the town in which you live. You have always had a high opinion of the company.
The company has been a major donor to the schools and to other charities in the area. In addition, many of your friends work for the company. John Wayne Company has asked you to become part of their accounting staff. You gladly accept this offer! On your first day of work, the head of the company informs the accounting staff that he is going to purchase another factory in the town.
The head of the company is buying the factory as a favor to his friends in the other town. The accounting staff starts to receive boxes of all the sales data from the other company to assess the price that will be offered to buy the company.
As you start to go through the documentation, you notice that many of the sales documents are missing. In addition, other ones are incomplete to the sales data and quantity.
There are so many of these instances that you start to question if this purchase is a good idea, and if the financial records are complete at all.
Write a business memo to the head of the company stating why his proposed actions (of buying the company) might not be a good idea based upon the sales information you reviewed.
Explain why this finding might bring into question the reliability and relevance of the company's financial records."