FASB

Identify the present rules for evaluating a lease and whether it is capitalized or not.

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Many companies use leases to acquire higher priced assets. Leasing is an important activity for many entities. Presently some leases are capitalized, and some are treated as operating leases. Opponents of this method criticize the accounting treatment because the present models do not meet the needs of users of financial statements; they do not always … Read more

What are the ethical aspects of Mr. Wrong’s action?Give an example of a company that was involved in this kind of unethical behavior.

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Mr. Right and Mr. Wrong own an antique store in a partnership. They share profits and losses equally and receive an annual salary of $50,000, as per the partnership agreement. Mr. Right travels the country buying antiques. Mr. Wrong manages the store. From time to time, they use some of the small items from the … Read more