You just have graduated from the university and you have found employment as financial accountant to
private company. The company’s operations are related to furniture industry in Doha. The company is
owned by the two directors (a husband & wife), who are actively engaged in the day-to-day running of
the business. Day by day you became have good relation with the directors and all your colleagues, and
the directors of the company are clearly popular and well respected in the local community. You are
still within your probationary period of employment, however, the directors of the company have asked
you to do some accounting transaction which seems not logical.
The case bellow is story about ethical issue in the manufacturing furniture company. To deal with what
you have been asked, you need to use Ethical Decision Making strategy. To do that you first of all,
need to clearly state the main ethical issue, highlighting the ethics of the dilemma, identify each
alternative. Remember you need to have more than one alternative. Focus on the main alternatives
(three at most).You must provide an analysis of each alternative identifying which stakeholders are
benefited and which stakeholders are harmed. Based upon your analysis Make your recommendation.
You are the financial accountant of the manufacturing furniture company . The company has several
current notes receivable on its year-end balance sheet. While collection seems certain, it may be
delayed beyond one year. Because of this, you as financial accountant of the company believe that
these notes receivable need to be re-classified as non-current. The both directors (husband & wife) also
think that collection will be delayed but does not favor re-classification because this will reduce the
current ratio. This reduction in current ratio is detrimental to company prospects for securing a major
Evaluate the case taking in account the following considerations;
1. Do the directors’ position pose an ethical dilemma for you as financial accountant? Explain
2. Why do you think re-classification of the notes receivable will reduce the current ratio and if so
what is the relation between current ratio and the prospect for securing the loan. (explain the
3. What stakeholders may be benefited or harmed?
4. What are your specific responsibilities and obligations?
5. Identify the alternatives? (Clearly state)
6. What is the benefit and harm of each alternative?
7. What action should be taken? Select the best or most ethical alternative, considering all the
circumstances and the consequences.
the writing should be in essay style (short introduction, discussion and short
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