A Policy on Ethical Behavior Includes Topics on Expectations, Process

question 260

True/False

A policy on ethical behavior includes topics on expectations, process for reporting misconduct, and consequences of engaging in unethical practices.

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Definitions:

Indirect Method

A technique used in cash flow statement preparation where net income is adjusted for non-cash transactions to calculate operating cash flows.

Cash Dividends

Payments made by a corporation to its shareholder members from earnings, typically in the form of cash.

Net Income

The amount of money remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Indirect Method

A financial reporting approach used primarily for cash flow statements that adjusts net income for changes in non-cash accounts to calculate cash flow from operating activities.