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Cardinal Corporatation is a trucking firm that operates in the Md-Atlantic states. One of the Cardinal's major customers frequently ships goods between Charlotte and Baltimore. Occasionally, the customer sends last-minute shipments that are outbound for Europe on a freighter sailing to Baltimore. To satisfy the delivery schedule in these cases, Cardinal's driver must substantially exceed the speed limit. Cardinal pays for any related speeding tickets. During the pat year, two drivers had their licenses suspended for 30 days each for driving at such excessive speeds. Cardinal continues to pay each driver's salary during the suspension periods.

Cardinal believes that it is necessary to conduct its business in this manner if it is to be profitable, maintain the support of the drivers, and maintain the goodwill of the customers. Evaluate Cardinal's business practies.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9965907

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