The Amount of Xylene That Can Be Used in Household

question 132

Multiple Choice

The amount of xylene that can be used in household paint is legally limited to 0.03 percent.Anything beyond this amount is hazardous to health and the environment, and considered a legal offense.Consequently, DM Paints Corp.has vouched to make its products as safe as possible.Therefore, it manufactures xylene-free paints even though this increases its costs and reduces the dividends paid to its shareholders in the long run.Which of the following responsibilities is DM Paints Corp.primarily compromising in this scenario?

• A) Legal responsibilities toward the government
• B) Economic responsibilities toward its shareholders
• C) Philanthropic responsibilities toward the local community
• D) Ethical responsibilities toward the society

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Definitions:

Debit Column

Refers to the section in accounting records where decreases in liabilities, or increases in assets and expenses are logged.

Trial Balance

An accounting report that lists the balances of all ledger accounts at a particular point in time to ensure that debits equal credits.

Ledger Balances

The total balances of all accounts in a ledger at a specific point in time, reflecting the cumulative effect of all transactions.

Posting

The process of transferring entries from a journal to the respective accounts in the general ledger.