| Course | AC298 Associate's Capstone in Accounting |
|---|---|
| Unit | Unit 6 |
| Paper type | Ethics scenario response |
| Length | About 780 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | Associate of Applied Science in Accounting |
| Updated | October 2026 |
Free sample paper for AC298 Unit 6
Hold Two Entries Until the Bank Has Read the Statements? A Unit 6 Ethics Scenario Response Inside the Capstone Business
[Student Name]
Purdue University Global
AC298: Associate's Capstone in Accounting
Unit 6 Ethics Scenario Response
[Instructor Name]
[Date]
Kiln Road Tile & Flooring, its owner, its bookkeeper and the bank are composite; the ethics statement, framework and credit loss standard cited are real.
The Request
On January 6, Teresa Vance asked Malik Osei, the store's part-time bookkeeper, to leave two December adjustments off the statements going to the bank on January 15. "Put them in February," she said. "The count was rushed, and half those contractors will pay eventually. The line renewal is what matters right now." The two entries reduce December's net income by $3,920, from $35,380 to $31,460, about 11 percent, and reduce current assets by the same amount.
Who Relies on the Statements
1. The bank, which will decide whether to renew a $40,000 line of credit and at what rate, based largely on these statements.
2. Teresa herself, who will plan next year's purchases and withdrawals from the reported profit.
3. The store's suppliers, who extend credit partly on the bank's willingness to lend.
4. The tax preparer, who will use the same books for Teresa's return.
5. Malik, whose professional judgment and name stand behind the books.
The Standard at Stake
Of the four standards in the IMA statement, the one squarely at issue is credibility, which asks a management accountant to report fairly and to include everything a lender or owner would need in order to read the statements correctly (Institute of Management Accountants, 2017). Competence, confidentiality and integrity are the other three. The shrinkage and the allowance are exactly such information. Both come from evidence Malik has in hand, a physical count and an aging of receivables.
Integrity also applies: it asks members to avoid conduct that would bring the profession into disrepute. Knowingly giving a lender statements that overstate profit and assets would do that.
The count may have been rushed and some contractors may pay, but those are reasons to review the estimates, not to remove them; an estimate made in good faith from current evidence belongs in the period it describes.
The accounting rules point the same way. The credit loss standard values receivables at what the store actually expects to receive (Financial Accounting Standards Board, 2016), and statements are useful only if they faithfully represent the period, completely and without error (Financial Accounting Standards Board, 2018).
Options Considered
Malik weighed three options before deciding. The first was to do as asked and record both entries in February. That would give the bank a December profit $3,920 higher than the evidence supports and would shift the loss into a month the bank may never see, which fails the credibility standard outright. The second was to record the entries but send the bank the draft statements anyway, on the theory that the bank asked for statements by January 15 and the draft was ready first. That is the same misstatement by a different route. The third was to record both entries in December, with the recount and the explanatory note described below. Only the third gives every user on the list above a set of figures they can rely on, and it still leaves room for the owner's legitimate point that the count might be revised.
The Decision
Malik will record both entries in December. He will offer Teresa two things in return. First, he will recount the three tile categories with the largest differences before January 12; if the recount finds tile the first count missed, the shrinkage entry will shrink with it. Second, he will add a note to the statements explaining that the allowance rose because two contractors are more than 90 days past due, so the bank sees the reason and not only the number.
The Price
The decision has costs, and they should be named. The bank may renew the line at a smaller amount or a higher rate; at 11 percent lower profit, the store still covers its interest many times over, so a refusal is unlikely, but a less favorable term is possible. Teresa may be angry, and Malik may lose a client he values. If she insists, the IMA guidance directs him to raise the matter, document it and, if it cannot be resolved, consider resigning the engagement rather than signing statements he knows to be misleading.
What Makes This Easier Next Year
Scheduling the inventory count in mid-December, and aging receivables monthly, would give the owner earlier warning and remove the temptation to argue about estimates the week before the bank meeting.
References
Financial Accounting Standards Board. (2016). Financial instruments, credit losses (Topic 326): Measurement of credit losses on financial instruments (Accounting Standards Update No. 2016-13). https://www.fasb.org
Financial Accounting Standards Board. (2018). Conceptual framework for financial reporting: Chapter 1, The objective of general purpose financial reporting, and Chapter 3, Qualitative characteristics of useful financial information (Statement of Financial Accounting Concepts No. 8, as amended). https://www.fasb.org
Institute of Management Accountants. (2017). IMA statement of ethical professional practice. https://www.imanet.org/career-resources/management-accounting-competencies/ethics-center
The Purdue Global AC298 Unit 6 instructions
The sixth AC298 unit gives an ethics scenario tied to the capstone business. Describe the request precisely, with its dollar effect on the statements. Identify everyone who relies on the figures and how. Name the professional standard at stake, usually from the IMA Statement of Ethical Professional Practice or the code your course assigns, and explain how it applies, in your own words. Weigh the realistic options, not only the obvious right answer. Commit to one course of action and explain the steps, including anything constructive you can offer the person applying pressure. State the costs of the decision honestly and the escalation path if the request is repeated. Close with what would prevent the situation next time. Expect three pages. Cite the code and accounting standards in APA 7.
How the AC 298 Unit 6 example is put together
The sample opens with the owner's words and the $3,920 effect. Five users are listed, from the bank to the bookkeeper himself. A section applies the IMA credibility standard, then integrity, and the highlighted sentence answers the owner's two arguments about the rushed count and the contractors who may pay. Accounting standards on receivables and faithful representation support the point. Three options are weighed, delaying, sending the draft and recording with a recount, and only the third survives. The decision section describes the recount and a note to the bank. A section prices the decision, including the escalation steps, and a final section recommends earlier counts and monthly agings.
AC298 Unit 6 rubric: what earns full points
Ethics responses are graded on accurate facts, correct application of the professional code and a defensible decision. Quantifying the request's effect earns precision credit. Identifying all affected users shows breadth. The standard should be explained and applied, not only quoted. Weighing options demonstrates reasoning. A decision that can be carried out, with something offered in return, shows professional maturity. Naming the costs and the escalation path is often a separate rubric point. Clear organization and APA 7 citations to the code complete the score for the response. Responses that keep the business relationship intact while refusing the request, for instance by offering a recount, tend to score above those that simply refuse.
AC298 Unit 6 help: mistakes that cost points
Many ethics responses decide quickly without measuring the effect of the request. Others quote the code at length without applying it. Users other than the bank are forgotten. The response treats the choice as obvious and never weighs alternatives. Costs to the accountant are left out, so the decision sounds free. Escalation is not mentioned, although the IMA guidance describes steps to take when a superior insists, from documenting the request to consulting an adviser to resigning the engagement. If your section's scenario involves your capstone business and you need a response that reaches and defends a decision, our team can draft it from your facts.
Get an AC298 Unit 6 example written to your instructions
Paste the scenario verbatim from your course materials, name the code of conduct the course assigns, and include the Unit 6 rubric. A free first response comes back in 24-48h that quotes the standard, works from those facts alone and states the decision's cost plainly. If your scenario involves your own capstone business, send its figures too. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
More AC298 papers and Associate of Applied Science in Accounting samples
- AC298 Unit 1: Capstone Weak Spot Post
- AC298 Unit 2: Capstone Proposal and Scope
- AC298 Unit 3: December Transaction Recording Set
- AC298 Unit 4: Year-End Adjusted Statement Package
- AC298 Unit 5: Eight-Ratio Analysis
- AC298 Unit 7: Seminar Progress Check
- AC298 Unit 8: Recommendation Memo
- AC298 Unit 9: Career Portfolio Piece
- AC298 Unit 10: Capstone Presentation
AC298 Unit 6 questions, answered
Which code should the response cite?
The one your course assigns. Accounting capstones commonly use the IMA Statement of Ethical Professional Practice for bookkeeping and management roles, and some sections use the AICPA Code of Professional Conduct instead. Quote the specific standard that governs the facts and cite it properly. Citing both codes loosely usually reads weaker than citing one precisely.
Does the response have to reach the ethical choice?
It has to reach a defensible one and defend it, which in most scenarios means the choice consistent with the code. What earns credit is the reasoning: facts, the duty in play, the alternative stated fairly, and the cost accepted openly. A response that reaches the right answer by summary alone scores lower than a careful one.
What if the person applying pressure is my own supervisor?
That is often the design of the scenario. The sample notes the escalation routes available in a small business, where there may be no one above the owner: documenting the request, declining in writing, consulting an ethics helpline or an attorney, and in the last resort withdrawing from the engagement. Each route is described with its practical cost.
Where can I find a free AC298 Unit 6 sample paper?
You can read a complete AC298 Unit 6 ethics response here, answering an owner's request to delay two year-end entries with the IMA standards, three options and a decision.
What does the bookkeeper offer the owner in the AC298 Unit 6 sample?
A recount of the three tile categories with the largest differences before the bank deadline, and a note explaining why the allowance rose, so the bank sees the reason behind the number.