Accounting statements can be manipulated. Please try to give an argument pro and con on this ethical issue. Any actual public examples you would like to cite would be most appreciated by all.
Scenario: A corporation can have so much financial leverage that it finds it difficult to obtain additional credit. To reduce this problem a corporation may lease, rather than buy assets. This "off balance sheet financing" makes the corporation's financial position appearbetter to the outsider. Is this an ethical recommendation for the financial manager to make? Explain.