Ethical issue in Accounting Book?

Python.com owes $6 million on notes payable that will come due for payment in $1.5 million annual installments. The company has used its cash to advertise heavily in the competitive dotcom usiness environment. The result is that cash is scare, and Python.com's management doesn't know where next year's note payment will come from. Python.com has prepared its balance sheet @ Dec. 31, 20X4, & it reports the following: Liabilities: Current: Accts payable: $1,900,000 - Salary payable & other accrued liabilities: 300,000 - Unearned rev. collected in adv.: 500,000 - Income tax payable: 200,00 Total current liabilities: 2,900,000 Long-term: Notes payable: 6,000,000 What is wrong with the way Python.com reported it liab.? Why did Python.com report its liab. this way? What is unethical about this way of reporting (these) liabilities? Who can be harmed as a result?

3 years ago - 0 answers