Ok the question is:



It is stand accounting procedures, or GAAP, to make an adjusting entry to remove the current year’s principle from the long-term liabilities. This entry reduces the long-term liabilities and increases the current liabilities. You are the bookkeeper for Biker’s Business. Biker’s Business has a bank loan that requires a current ratio of 1.5 times. The owner has asked that you do not make the adjusting entry to take the current portion from the long-term liabilities. You know if you make the adjusting entry Biker’s Business’ loan will need to be repaid immediately (or the loan called). What should you do?


I know it's unethical and illegal, because it's lying to the IRS and to the bank. But what is the question asking? Does it want just a written answer or does it want a mathematical one? And what else could I write, if it's a written answer, besides what I have already here?

Thank you!!!