An Ethics Review Board

question 13

Multiple Choice

An ethics review board:

• A) discourages subordinates from taking their ethical concerns to the upper management of a company.
• B) typically has no effect on the ethics of an organization.
• C) should not be expected to have any lasting effect on the behavioral norms within a company.
• D) can investigate allegations of unethical behavior and serve as a sounding board for employees.
• E) should be composed solely of outside experts who are in no way financially involved with an organization.

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Definitions:

Adjustments

At the close of an accounting period, records are adjusted to attribute revenues and expenses to the timeframe in which they truly happened.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, used as the basis for preparing financial statements.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.

Drawing Account

An account used to record withdrawals of business assets by the owner for personal use, reducing the capital account.