The Purpose of Ethics in Accounting Is to Maintain Public

question 95

True/False

The purpose of ethics in accounting is to maintain public confidence in business institutions,financial markets,and the products and services of the accounting profession.

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Definitions:

Market Risk

The possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets.

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification among different assets.

Financial Leverage

Utilizing debt to finance additional assets, aiming to increase returns to shareholders but also increasing risk.

ROE

A metric indicating how effectively a company uses shareholders' funds to generate profits.