Indicate Which of the Following Can Be Described as a Breach

question 15

Multiple Choice

Indicate which of the following can be described as a breach of ethical standards:

• A) Employee A, who is all caught up on his regularly assigned work for the day with still two hours to go until quitting time, fills the time outlining a plan for starting his own business.
• B) Employee B calls in sick so that she can get in a day's Christmas shopping.
• C) Employee C, always willing to do a favor for a friend, clocks out for a coworker who quietly leaves work early.
• D) All of the above.

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Definitions:

Unobservable Inputs

Inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

A system that prioritizes the inputs used in the valuation of assets and liabilities for financial reporting purposes.

Equity Instrument

is a financial instrument that evidences ownership interest in an entity, such as shares of common stock.

Exit Price

The amount that could be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.