Your client is preparing financial statements to show the bank. You know that he has incurred a computer repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not received the official bill, although he knows the expense was $1,250. Your client is on the accrual basis of accounting. He does not want the computer repair...

denemotley

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• May 12th, 2010

Is your client behaving ethically by suggesting that the computer repair expense not be booked until the officail bill is presented?

karamshree

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• Nov 23rd, 2009

It depends on what was the catagary of business if the computer repairing expense is mendatory field in the head of indierect expense in P&L then he should show because at time of assessment there may be some problem.

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