Terrence Purposely Inflates Profitability Estimates to Impress Outside Investors

question 19

Multiple Choice

Terrence purposely inflates profitability estimates to impress outside investors. He most likely has committed the ethical violation of ________.

• A)treating people unfairly
• B)causing a problem to take credit for fixing it
• C)conflict of interest
• D)engaging in unethical behavior to benefit the company.

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Definitions:

Ledger

A book or collection of financial accounts in which transactions are recorded.

Account Balance

The amount of money in a financial repository, such as a bank account, at any given time.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to accounts in the general ledger.

Ledger

A comprehensive collection of all accounts and their transactions used in the accounting system of a business.