Each of the Following Considerations Should Help to Evaluate Alternative

question 26

Multiple Choice

Each of the following considerations should help to evaluate alternative courses of action in the decision making model except for:

• A) Whether the alternatives are consistent with professional standards
• B) Whether the alternatives are consistent with firm policies and its own code of ethics
• C) The stage of moral development of the decision maker
• D) The potential harms and benefits of alternative courses of action

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Definitions:

Capital Balances

The amount of money that owners have invested in a firm plus any retained earnings or minus any losses.

Income Ratio

A metric used to assess the profitability of a company, often calculated as net income divided by total revenues or sales.

Unlimited Life

An accounting concept referring to corporations that continue to exist irrespective of the status or continuity of their owners.

Legal Liability

The legal responsibility to settle financial debts or obligations resulting from lawsuits or breaches of contract.