The Main Difference Between a Discretionary and Nondiscretionary Accrual Is

question 59

Multiple Choice

The main difference between a discretionary and nondiscretionary accrual is:

• A) Discretionary accruals are items that management has full control over
• B) Discretionary accruals are based on changes in the fundamental performance of the firm
• C) Discretionary accruals arise from transactions considered normal for the firm
• D) Discretionary accruals always lead to an increase in earnings

Recognize the differences between rational ethics and utilitarianism.

Identify the concept of utility thinking and its role in ethical decision-making.

Distinguish between negative rights theory and positive law.

Explain the significance of landmark legal cases and their influence on ethical reasoning.

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Definitions:

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products.

Distribution Activities

The processes involved in making a product or service available for use or consumption by a consumer or business user.

Product

An item or service created through a process and offered to a market to satisfy a want or need.