Ethics

question 76

Multiple Choice

Ethics

• A) are beliefs that separate right from wrong
• B) and law often coincide
• C) help to prevent conflicts of interest
• D) are very important considerations for accountants
• E) All of these

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Definitions:

Investment Income

The money earned from various investments, including dividends, interest, or rental income.

Significant Influence

The power to participate in the financial and operating policy decisions of an entity, but not control those policies.

Fair-value Method

An accounting strategy used to measure and report assets and liabilities on the basis of estimated fair market prices.

Equity Method

An accounting technique used to record investments in associated companies, recognizing the investor's share of the investees' income.