Sally and Ed are aware that discussion of the company's accounting philosophy will come up in the next board of directors meeting, and they want to have some answers.
Suppose that One-Hundred-Percent Vitamin Co. is privately owned. What accounting philosophy would you recommend (conservative, lower profits or aggressive, higher profits)?
Be sure to explain the rationale for why the company should follow your recommended philosophy.
In addition, address the profit potential of accounting using an aggressive approach versus the conservative approach. How would taxation affect your recommendation?
Deliverable length 3 to 4 paragraphs with references.