Steve Is in Charge of Accounting for the Purchase of Equipment

Multiple Choice

Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc.The company has a policy that all expenditures greater than $1,000 must be capitalized.Steve is under pressure from his supervisor to minimize capital expenditures less than $1,000 to keep earnings as high as possible.Steve decides to take two separate expenditures - one for $600 and the other for $900 - and he groups them into one expenditure so that the capitalization rules apply.Steve's actions can be characterized as:

A) Lacking in of moral sensitivity
B) Lacking in professional skepticism
C) Loyal to the company's best interests
D) All of the above