Caleb Was Recently Hired as a Car Salesperson

question 106

Multiple Choice

Caleb was recently hired as a car salesperson.He is going through his orientation and is reading a document on the company's code of ethics.This document is highlighting how to deal with ethical situations such as conflict of interest, political gifts, observing the laws, etc.In this scenario, Caleb is reading a code of ethics comprised of which of the following types of statements:

• A)Policy-based statements
• B)Proactive-based statements
• C)Procedure-based statements
• D)Principled-based statements
• E)Situation-based statements

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Definitions:

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recorded when cash is paid.

Debit Portion

The side of an accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.

Asset Account

A category in accounting ledgers that records the increases and decreases in specific assets owned by a business.

Liability Account

An account on a company's balance sheet representing debts or obligations that the company owes to others.