Curry Is Astonished

question 20

Multiple Choice

Curry is astonished.Her firm has never knowingly given or accepted a bribe from any customer or supplier,foreign or domestic.And,her company has strict controls that assure the propriety of all foreign transactions.Yet she is still being severely admonished for violating the FCPA.What did Curry do wrong?

• A) Her firm must have failed to maintain books and records that accurately account foreign.
• B) She must have spoken with a government official in China about foreign exchange.
• C) Her firm must have failed to publish a corporate Code of Ethics.
• D) Her firm must have solicited bids for construction contracts on the Internet.

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Definitions:

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments that are not considered to be cash equivalents.

Dividends

Payments made by a corporation to its shareholders, often derived from the company's profits.

Financing Activities

These are transactions that involve changes in equity and long-term borrowings of the company, part of the cash flow statement.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.