Nicole Regularly Inflates Invoices to Get a Larger Commission on Her

question 9

Multiple Choice

Nicole regularly inflates invoices to get a larger commission on her sales.She knows that most salespeople at her organization inflate their invoices by about 20%.Nicole only inflates hers by 10%.She figures if anyone gets caught,hers will look like honest mistakes compared to the others.It appears Nicole's justification for her unethical behavior is ______.

• A) disregard or distortion of consequences
• B) I did it for the good of others or the company
• C) I was only following orders
• D) I'm not as bad as the others

---

Definitions:

Operating Activities

Activities that relate to the primary operations of a company, influencing its net cash flow from operating income.

Indirect Method

A way of reporting net cash flow from operating activities in the statement of cash flows by adjusting net income for changes in working capital items and non-cash transactions.

Statement of Cash Flows

This financial statement provides an overview of a company's cash inflow and outflow over a period, detailing sources and uses of cash from operating, investing, and financing activities.

Operating Activities

Operating activities refer to the day-to-day functions involved in running a business, which are directly related to its primary activities and include generating revenue and paying expenses.