Question

I am employed as an accountant for Innovative Computing. My company is in the process of signing a large contract with an electronics components supplier. I have a friend who works for the electronic components supplier, and you are aware of the company having trouble paying bills. Explain why I should or should not report this to your employer before the purchase.

a) Report it to maintain ethical standards, ensuring transparency and fairness in business dealings.

b) Do not report it, as it's not directly related to the contract, and it may strain your relationship with your friend.

c) Report it only if the financial trouble is severe enough to jeopardize the contract.

d) Do not report it, as it's a common issue in business, and your employer may not consider it relevant.

Answer 1

It is important to maintain ethical standards by reporting the financial trouble of the electronics components supplier to your employer. By doing so, you are upholding your professional responsibilities and acting in the best interest of your company.

Step-by-step explanation:

In this situation, it is important to maintain ethical standards and ensure transparency and fairness in business dealings by reporting the financial trouble of the electronics components supplier to your employer. By doing so, you are upholding your professional responsibilities and acting in the best interest of your company. The financial trouble of the supplier can potentially impact the contract, and it is crucial for your employer to be aware of any risks involved.

Reporting the situation to your employer does not strain relationships, as your duty as an accountant is to provide accurate financial information and protect the interests of your company. It is important to separate personal relationships from professional responsibilities.