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To be honest, in this scenario, all I am thinking about is that bonus I worked hard for all
year long. (Even though we all feel that this is an ethical dilemma, think realistically at
what most people would do. We all know right from wrong it what we do with the feelings
that counts.) If the expenses are recorded this year I will be off on my target revenue by
$50,000. This is a very tempting situation. Even though I realize all transactions must be
recorded and accounted for, I am still only thinking about my bonus. To handle this
situation the way that it will benefit me most is to employ conservation. Conservation is a
method that accountants may choose to use to select methods of measurement that yield
lower net income, lower assets, and lower stock holders equity. (Horngren, Sundem,
Elliott, Philbrick, 2006) (This would be my first instinct to try to save my bonus that I have
worked hard for, for the past year.)
Faced with the dilemma of losing my bonus if the supplies that were ordered are recorded
this year I must come up with a plan that will assure all records are accurate and still keep
my bonus. It is thought that most of the supplies will be used by year-end and must be
accounted for. This being the case and the fact that I am probably not the only one who is
going to be affected, the use of minimal supplies will be enacted. There are other ways to
