Which of the Following Levels of the Pyramid of Global

question 115

Multiple Choice

Which of the following levels of the pyramid of global corporate social responsibility and performance represents a company's requirement to be profitable?

• A) Economic responsibility.
• B) None; this is not part of the pyramid.
• C) Ethical responsibility.
• D) Philanthropic responsibility.
• E) Financial responsibility.

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Definitions:

Bad Debts Expense

An expense reported on the income statement, accounting for the estimated amount of accounts receivable that are not expected to be collected.

Allowance Method

The allowance method is an accounting technique used to estimate and prepare for the amount of accounts receivable that may not be collectible.

Journal Entries

Records of financial transactions in the accounting system, detailing debits and credits to various accounts.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's receivables that may not be collectible.