Tesco Was Forced to Restate Its Earnings for the First

question 18

Multiple Choice

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K.food business had booked income early and delayed the booking of costs in order to improve appearances of financial performance.This scandal results from ________ and ________.

• A) poor environment; management systems
• B) poor governance; control
• C) external environmental factors; internal environmental factors
• D) leadership; financial systems

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Definitions:

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders at no extra cost, based on their existing holdings.

Stock Dividends Distributable

Shares of stock that are to be issued to shareholders as a dividend, representing a distribution of additional shares rather than cash.

Common Shares

Units of ownership interest in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Dividends Declared

Dividends declared are the portion of a company's earnings that the board of directors decides to distribute to shareholders.