When Applying the Five-Step Framework for Making Ethical Decisions, Managers

question 37

Multiple Choice

When applying the five-step framework for making ethical decisions, managers should, at first, ________.

• A) evaluate alternatives
• B) examine the facts
• C) recognize the ethical problem
• D) implement a decision

Grasp the concept of horizontal analysis and its application in comparing financial statements.

Understand the effects of transaction corrections on account balances.

Distinguish between the normal balance sides of different accounts and correctly classify them as debit or credit side balances.

Understand basic journal entries for common stock issuance and direct investments in a business.

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Definitions:

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories.

Book Of Final Entry

Book that receives information about business transactions from a book of original entry (a journal). Example: a ledger.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to ensure that total debits equal total credits.

Accounts Payable

Short-term liabilities of a business that represent amounts owed to creditors for goods and services purchased on credit.