During a Year-End Evaluation of the Financial Records of the Gretchen

question 52

Multiple Choice

During a year-end evaluation of the financial records of the Gretchen Company for the year ended December 31, 2010, the following was discovered: Inventory on Januaty 1,2010, was understated by $\$ 6,000$ .
Invent ofy on December 31,2010 , was under st at ed by $\$ 18,000$ .
Rent of $\$ 20,000$ collected in advance on December 29,2010 , was included in income for 2010.
A probable, reasonably estimated contingent liability of $\$ 30,000$ was not recorded as of December 31,2010
Net income for 2010 (before any of the above items) was $100, 000.The corrected net income, ignoring income taxes, for 2010 should be

• A)$50, 000
• B)$58, 000
• C)$62, 000
• D)$68, 000

Describe strategies for maintaining high ethical standards within organizations.

Understand the four dimensions of justice in organizations and apply them through examples.

Distinguish between instrumental and terminal values and their relevance in a business setting.

Define what comprises corporate governance and what does not.

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Definitions:

Technical Competence

The expertise and ability to perform the specialized tasks relevant to a particular field or job.

Traditional Compromise

Traditional compromise involves resolving differences or disputes by mutual concessions, often adhering to established norms or practices.

Top-Down View

A perspective that emphasizes leadership, decision-making, or analysis starting at the highest levels of an organization or system.

Social Hierarchy

A system of organization within a community or society that ranks individuals in a ladder of status.