fin case

This case follows Mort Garcia, an inexperienced accountant, through the steps taken to solve an ethical dilemma that arises at Go Tech, Inc. regarding when to recognize revenue. Mort Garcia is faced with an awkward situation when the company’s management desires to recognize revenue before it has technically left the hands of the company. The dilemma is further enhanced because Mort is hesitant to testify with certainty that this practice is against accounting standards because he is not confident that his experience as an accountant has prepared him to be the judge on this issue. In this case, Mort Garcia must decide where to draw the line, perhaps against what is in the immediate best interest of his employing company, about how far to push proper cut offs for shipments.
The History of Go Tech, Inc.. Go Tech is a new company that is showing real growth potential under the leadership of an experienced management team recently brought in from successful Fortune 500 companies. A...