Ethics—A Writing Experience 5-4 [Note; An acceptable answer to the first one is provided as an example below.] 1. Management is breaking up a material item into immaterial portions for the purpose of...

1. In the given situation the move by the management, breaking up material item into immaterial portions for the purpose of smoothing income, is not ethical or one can say it is a misrepresentation of the fact by the management to the stakeholders and is unethical.
As per generally acceptable accounting principle (GAAP) the revenue or expenses shall be recorded to the period which it belongs to.
2. Yes the accountant is correct in believing so, because of following two reasons;
· Management has not sufficient justification to explain the...