Essay
Thomas Carlisle Jr. was appointed the manager of Westbrook Properties, a recently formed company that manages residential rental properties. Maria Fremont is the accountant. She prepared a chart of accounts based on an analysis of the expenditures of the company. One of the largest expense categories is Travel and entertainment. Mr Carlisle believes that it is important to maintain a presence in the social life of the city. In this, he sharply differs from his father, Thomas Carlisle Sr. The elder Mr Carlisle has set up Westbrook Properties in order to test his son's management skills before allowing him to manage a more lucrative commercial property business. Mr Carlisle Sr. provided the capital for Westbrook and maintains close contact with the company. He allowed his son, however, to hire his own employees.
Mr Carlisle Jr. has asked Ms Fremont to name the Travel and entertainment account Property development. He hopes to deflect his father's attention away from the amount he has spent on travel and entertainment until he has proven that his methods work. When Ms Fremont resisted, he reminded her that he, not his father, hired her. He also reminded her that she had been enthusiastic about his business plans when she was hired.
Required:
1. Who are the stakeholders in this situation?
2. Should Ms Fremont agree to the change in the Travel and entertainment account to Property development? Explain.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: For each item below, indicate whether a
Q3: Match the items by choosing the appropriate
Q4: During an accounting period, a business has
Q5: For each item , indicate whether a
Q6: For each item below, indicate whether a
Q7: For each of the following accounts indicate:
Q8: During an accounting period, a business has
Q9: Some of the following errors would cause
Q10: Journalise the following business transactions in general
Q11: Match the items by choosing the appropriate