1. meg ryan, the bookkeeper of logan co., was scheduled to leave on a three-week vacation at 5: 00 on friday. she couldn’t get the company’s trial balance to balance. at 4: 30, she decided to put in fictitious figures in her computer to make it balance. meg told herself she would fix it when she got back from her vacation. was meg right or wrong to do this? why?

No, She is not right in doing so.

Explanation:

As provided, she tries to close the books by adding all the false amounts which shall alter the balances temporarily and then after returning from vacation she will correct them, but up till vacation the accounts will not represent the true and fair view.

As per US GAAP the books shall represent true and fair view of all the transactions of the company in its accounting records, not only at the year end but even during the year.

Therefore, this will be false and unethical and will be against the compliance of US GAAP if such practice of wrong recording is done.

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the metropolitan museum of art. source: anton_ivanov / shutterstock.

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explanation: