At the end of the current month, Tomas Lott prepared a trial balance for AAA Rescue Service. The credit side of the trial balance exceeds the debit side by a significant amount. Tomas has decided to add the difference to the balance of the miscellaneous expense account in order to complete the preparation of the current month’s financial statements by a 5:00 PM deadline. Tomas will look for the difference next week when he has more time.
Do you feel that Tomas is acting in a professional manner? Who is impacted by Tomas’s decision to “plug” the numbers in order to get his statements to balance? If you were in Tomas’s position, how would you have handled this situation?
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