Which of the Following Is an Argument Put Forth by Economist

question 4

Multiple Choice

Which of the following is an argument put forth by economist Milton Friedman? 

• A) ​A law represents the minimal moral standards of society, so an individual should never take any action that violates the law. 
• B) ​It is unethical to take any action that is not in an organization's long-term self-interest. 
• C) ​It is socially irresponsible for companies to divert time, money, and attention from maximizing profits to social causes and charitable organizations. 
• D) ​An individual's ethical decision is based on his or her level of moral development.

Understand the classification of accounts as assets, liabilities, and equity.

Comprehend the principles guiding revenue and expense recognition, including the revenue recognition principle and the expense recognition principle.

Analyze the effects of transactions on the accounting equation.

Calculate net income and equity changes resulting from business operations and transactions.

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods and the cost of shipping as soon as the goods leave the seller's premises.

Goods In Transit

Items being transported from one location to another, which have not yet reached the recipient or destination point.

Purchaser's Inventory

Goods and materials that a business holds for the ultimate goal of resale.

LIFO Conformity Rule

A tax regulation requiring companies that use the Last In, First Out (LIFO) method for tax reporting to also use it for financial reporting.