Which of the Following Statements Regarding Annual Reports Covering Corporate

question 11

Multiple Choice

Which of the following statements regarding annual reports covering corporate social responsibility is INCORRECT?

• A)While reporting under this framework is voluntary in the United States, the SEC has endorsed these types of nonfinancial reports.
• B)These reports contain mandatory disclosures on how companies are conducting and governing their businesses in ways that only benefit their shareholders.
• C)Some countries mandate some form of corporate social responsibility reporting in order to be listed on their stock exchanges.
• D)Many of the world's largest businesses issue corporate social responsibility reports under the strict guidelines of the Global Reporting Initiative.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents the owners' share.

Current Assets

Current assets are all assets that a company expects to convert to cash or use within one year, such as inventory, accounts receivable, and cash.

Stockholders' Equity

Ownership equity represented by the leftover interest in a corporation's assets once its liabilities have been subtracted.

Account Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for.