Which of the Following Is Most Important When Designing an Internal

question 90

Multiple Choice

Which of the following is most important when designing an internal code of conduct?

• A)requesting U.N. oversight and intervention when necessary
• B)communicating the code of conduct only to employees
• C)reporting results to external stakeholders
• D)forming local policies for each subsidiary

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Definitions:

Effective-Interest Method

A method of calculating the interest expense on a bond or loan by applying the constant interest rate to the outstanding balance of the debt for each period.

Bond Discount

The discrepancy between a bond's nominal value and its market price when it is traded at a price below its nominal value.

Expense Recognition Principle

An accounting guideline that dictates expenses to be recorded in the period they are incurred to generate revenue, ensuring accurate financial statements.

Historical Cost Principle

An accounting principle that states all assets should be recorded and accounted for based on their original purchase cost.