Short Answer Questions (4 marks each): 1. Sally Newheart, who works in the finance department...
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Accounting
Short Answer Questions (4 marks each): 1. Sally Newheart, who works in the finance department of Vector Enterprises, was invited to dinner by her parents. Publicly, Vector Enterprises seems to be one of the best businesses in the news. However, Sally Newheart's analytic work at the office suggests that many of the opportunities are even stronger than reported, and could lead to fabulous gains in the near future. The parents follow the news and are unhappy with their current retirement portfolio. Sally Newheart is tempted to advis her his parents to invest in Vector Enterprises. Briefly outline the ethical issues faced by Sally Newheart. 2. Hector Enterprises's owner, Teddy Bearheart, wants to improve the balance sheet of the company by including the assets of one of his other companies. Further, he feels this is fine: Being a sole proprietor, all of his assets are legally part of his estate, and thus, can be mixed/matched up any way he wishes. Identify the accounting principle(s) that would be broken if Hector Enterprises were to handle the transactions as the president wishes. Describe the principle(s) and explain why the proposed transactions would be in violation
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