The following is an excerpt from a conversation between two employees of Resource Technologies,…

The following is an excerpt from a conversation between two employees of Resource Technologies,

Haley Eubanks and Clay Hamon. Haley is the accounts payable clerk, and Clay

is the cashier.

Haley: Clay, could I get your opinion on something?

Clay: Sure, Haley.

Haley: Do you know Amber, the fixed assets clerk?

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

Haley: 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 statements. That can’t be good accounting,

can it? What do you think?

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

Haley: 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 Clay and Haley if you were Amber?

 

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