ACCT Question 7

 

Read and Answer the following thoroughly. Minimum 250, 2 references, and  format required.

 

The following is an excerpt from a conversation between two employees of Linquest Technologies, Don Corbet and Rita Shevlin. Don is the accounts payable clerk, and Rita is the cashier.

 

Don: Rita, could I get your opinion on something?

 


Rita
: Sure, Don.

 


Don
: Do you know Margaret, the fixed assets clerk?

 


Rita
: I know who she is, but I don’t know her real well. Why?

 


Don
: Well, I was talking to her at lunch last Tuesday about how she liked her job, etc. You know, the usual … and she mentioned something about having to keep two sets of books … one for taxes and one for the financial statements. That can’t be good accounting, can it? What do you think?

 


Rita
: Two sets of books? It doesn’t sound right.

 


Don
: It doesn’t seem right to me either. I was always taught that you had to use generally accepted accounting principles. How can there be two sets of books? What could be the difference between the two?

 

 

 

 

 

How would you respond to Rita and Don if you were Margaret?

 

 

 

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