Provide responses for each of the following questions.
a. Discuss whether you think each of the following actions (adapted from the FAFSA website) to
increase the chances of receiving financial aid is ethical.
1. Spend the students assets and income first, before spending parents assets and income.
2. Accelerate necessary expenses to reduce available cash. For example, if you need a new car, buy
it before applying for financial aid.
3. State that a truly financially dependent child is independent.
4. Have a parent take an unpaid leave of absence for long enough to get below the threshold level
of income.
b. What are some reasons why a company might want to overstate its earnings?