About 1 pageRaffie’s Kids, a nonprofit organization that provides aid to victims of domestic...

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About 1 pageRaffie’s Kids, a nonprofit organization that provides aid to victims of domestic violence, low-income families, and special-needs children, has a 30-year, 5% mortgage on the existing building. The mortgage requires monthly payments of $3,000. Raffie’s bookkeeper is preparing financial statements for the board and, in doing so, lists the mortgage balance of $287,000 under current liabilities because the board hopes to be able to pay the mortgage off in full next year. Of the mortgage principal, $20,000 will be paid next year if Raffie’s pays according to the mortgage agreement. The board members call you, their trusted CPA, to advise them on how Raffie’s Kids should report the mortgage on its balance sheet.For this week’s discussion – please respond to the questions listed below. In addition to your initial response, please be sure to respond to at least two other student’s initial responses as well.Required Responses:What is the ethical issue?Provide and discuss the reason for your recommendation.

Robert · Accepted Answer

Being a non-profit organization Raffies kid’s receives a lot of financial aid and sponsorship 
from a lot of individuals firms, government, other non-profit organizations etc. The 
organization is ethically liable to present the financial status of the organization in the most 
appropriate and transparent manner.   
Generally, mortgage payments are long-term liabilities.

About 1 page Raffie’s Kids, a nonprofit organization that provides aid to victims of domestic violence, low-income families, and special-needs children, has a 30-year, 5% mortgage on the existing...

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