Which of the Following Actions Would Be Considered Unethical

question 40

Multiple Choice

Which of the following actions would be considered unethical?

• A)A company does not distribute any of its profits to stockholders.
• B)A company rounds the revenues and expenses that it reports on the income statement.
• C)An unintentional mistake made by a new accountant.
• D)Receiving a paycheck for double the amount due to you and not reporting it to your employer.

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received, often expressed as an annual percentage based on the investment’s cost, current market value, or face value.

CAPM Approach

The Capital Asset Pricing Model, a formula used to determine the expected return on investment (ROI) by correlating the risk and expected return.

Cost of Equity

The return that shareholders require or expect to earn on their investment in the company, considered as the company's cost of retaining and using equity capital.

CGT

Capital Gains Tax, which is a tax on the profit realized on the sale of a non-inventory asset.