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What Are the Sources of Guidance for Firms and Their

question 21

Essay

What are the sources of guidance for firms and their managers in a situation in which payments are either demanded or likely to obtain a sale? What does the ethics analysis focus on?


Definitions:

Revenue

The complete financial intake a company secures from transactions involving goods or services within a certain interval.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a specified maturity date.

Fair Value

The estimated price at which an asset or liability could be sold or settled in a current transaction between willing parties.

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