Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

Which of the following best describes the accounting implication when an accountant signs a client’s name on a document?

It is a standard accounting practice for efficiency.

It is considered an unethical act and may constitute fraud.

It is only allowed if the accountant has verbal permission.

It automatically records a debit to the client’s account.

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Verified step by step guidance

Understand the ethical principles in accounting: Accountants are bound by professional ethics, which include integrity, objectivity, and professional behavior. Signing a client’s name on a document without proper authorization violates these principles.

Recognize the implications of fraud: Fraud involves intentional deception for personal or financial gain. Signing a client’s name without explicit permission can be considered fraudulent, as it misrepresents the client’s consent or approval.

Evaluate the options provided: Analyze each option to determine its alignment with ethical accounting practices. For example, signing a client’s name for efficiency or with verbal permission does not meet the standard of professional conduct.

Consider the legal consequences: Unethical actions, such as signing a client’s name without authorization, may lead to legal repercussions, including penalties or loss of professional certification.

Conclude with the correct ethical stance: The correct answer is that signing a client’s name without authorization is considered an unethical act and may constitute fraud, as it violates professional accounting standards and ethical guidelines.