Conflicts of Interest Often Compromise Managers' Ability to Make Ethical

question 13

Multiple Choice

Conflicts of interest often compromise managers' ability to make ethical decisions. Which of the following situations most likely includes a conflict of interest?

• A) Selling goods and services at discounted prices to some clients based on historical volumes
• B) Offering sales on credit only to creditworthy clients
• C) Paying dividends to shareholders rather than investing in an environmental project
• D) Using LIFO to report the cost of ending inventory on the balance sheet

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Definitions:

Corning Company

A technology company known for its specialty glasses, ceramics, and related materials and technologies, including the development of Gorilla Glass.

Chart of Accounts

A systematic listing of all ledger account titles and numbers used by a company, showing the classification and arrangement of accounts.

Posting Reference

A notation that guides one from a journal entry to its corresponding ledger account, facilitating audit trails.

Cash Account

An account that records the amounts of cash available to a business at any given time.