Question

Your company has a bank loan that requires a current ratio of 1.5 times. The owner has asked you, the bookkeeper, not to make the adjusting entry that would take the current portion from the long-term liabilities. If you make the adjusting entry, the company's loan will need to be repaid immediately (or the loan called). What should you do?

Answer 1

The answer is In this case you should not make the adjusting entry, as it is unethical and represents falsifying the financial.