Ethics play a vital role in business and in the accounting profession. Here is an opportunity to
connect you current learning about inventory with the profession’s commitment to ethics.
EC5: Tiffany Lyons was just hired as the assistant treasurer of Key West Stores. The company is
a specialty chain store with nine retail stores concentrated in one metropolitan area. Among other
things, the payment of all invoices is centralized in one of the departments Tiffany will manage.
Her primary responsibility is to maintain the company’s high credit rating by paying all bills when
due and to take advantage of all cash discounts.
Jay Barnes, the former assistant treasurer who has been promoted to treasurer, is training Tiffany
in her new duties. He instructs Tiffany that she is to continue the practice of preparing all checks
“net of discount” and dating the checks the last day of the discount period. “But,” Jay continues,
“we always hold the checks at least 4 days beyond the discount period before mailing them. That
way, we get another 4 days of interest on your money. Most of our creditors need our business
and don’t complain. And, if they scream about our missing the discount period, we blame it on the
mailroom or the post office. We’ve only lost one discount out of every hundred we take that way. I
think everybody does it. By the way, welcome to our team!”
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Accounting principles (13th ed.). Hoboken,
NJ: Wiley.
You are to write a 2-3 pages paper. Use the ethics resources for accounting. Make sure to cite at
least on source from those provided and reference them (in your separate reference page)
following APA guidelines.
Unit 9 [114: Accounting I]
Assignment: Ethics Writing
Respond thoroughly to the following questions in your reflective essay:
- What are the ethical considerations in this case?
- Who are the stakeholders that are harmed or benefited in this situation?
- Should Tiffany continue the practice started by Jay? Does she have any choice?
- Which Code of Conduct principle would you act on from the professional codes of conduct
guiding ethical behavior in this field (Provide the name of the organization, and the code of
conduct that pertains to why you act, and then provide the URL for your source)? - Based on your chosen code of conduct principle(s), what would you do (step-by-step) in order
to act in accordance with your chosen principle to address this situation?
Submit your paper to the Unit 9 Assignment Dropbox.
Unit 9 Assignment – Grading Rubric Possible
Points
Points
Earned
In a 2-3 pages essay format, answers questions 1–3 correctly and
thoroughly. - What are the ethical considerations in this case?
- Who are the stakeholders that are harmed or benefited in this
situation? - Should Tiffany continue the practice started by Jay? Does she
have any choice?
30
Questions 4 & 5: Based on chosen code of conduct principle(s),
provides step-by-step action plan to address the ethics case situation
based on your chosen principle(s).
10
Uses correct grammar, and spelling. 5
Uses viable ethics resources, and provides appropriate citations, title,
and reference page following APA guidelines.
5
Total Points 50 points
Unit 9 [114: Accounting I]
Sample Solution
