Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 17 Oct 2017 My Price 6.00

WXT Tech- nologies

CP 9-2  Financial vs. tax depreciation

The following is an excerpt from a conversation between two employees of WXT Tech- nologies, Nolan Sears and Stacy Mays. Nolan is the accounts payable clerk, and Stacy is the cashier.

Nolan: Stacy, could I get your opinion on something?

Stacy:  Sure, nolan.

Nolan: Do you know Rita, the fixed assets clerk?

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

Nolan: Well, I was talking to her at lunch last Monday 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 state- ments. That can’t be good accounting, can it? What do you think?

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

Nolan: 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 can be the difference between the  two?

How would you respond to Nolan and Stacy if you were Rita?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Oct 2017 07:10 PM My Price 6.00

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