John Was Recently Hired by Backstreet Books

question 262

Multiple Choice

John was recently hired by Backstreet Books. At the beginning of the first day on the job, his store manager handed him a small booklet consisting of company rules. He was asked to read it and sign and submit the last page, before starting work. Among other things, the rules explicitly discussed reprimands for grievous behavior and dismissal if the firm could prove that the employee was stealing product from the store. This booklet represented the ___________ of the store.

• A) company-based ethics
• B) compliance-based ethics
• C) integrity-based ethics
• D) whistleblowing-based ethics

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Definitions:

Uncollectible

Refers to amounts due to a company that it considers unlikely to be collected from debtors.

Trade Receivables

Sums due to a business from its clients that stem from selling products or services on account.

Exchange Notes

Financial instruments representing an agreement between parties to exchange interest payments or currency values over a set period.

Direct Write-off

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed irrecoverable.