Which of the Following Statements Is True About Ethical Decision

question 13

Multiple Choice

Which of the following statements is true about ethical decision making in business?

• A)Ethical decision making is limited to the type of major corporate decisions with social consequences.
• B)Every employee does not face an issue that requires ethical decision making.
• C)All ethical decisions can be covered by economic, legal, or company rules and regulations.
• D)Ethical decision making should rely on the personal values and principles of the individuals involved.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account on a company's balance sheet that represents the estimated portion of accounts receivable that may not be collectible.

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable deemed uncollectible as an allowance for doubtful accounts.

Account Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Total Current Assets

The sum of all assets expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.