To Ensure That the Guidelines for Right Behavior Are Followed

question 65

Multiple Choice

To ensure that the guidelines for right behavior are followed, a corporation should follow:

• A) ethical principles.
• B) accounting law.
• C) the leaders in their category of business.
• D) the corporate culture.
• E) competitive law.

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Definitions:

Cash Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Cash Payments

Transactions involving the transfer of actual cash from one party to another, often for goods or services rendered.

Dividends Payable

Liabilities that represent a company's obligation to pay its shareholders dividends declared by its board.

Statement of Cash Flows

A statement that outlines the influence of balance sheet and income modifications on the status of cash and cash equivalents, divided by the categories of operational, investment, and financial activities.