A New Staff Accountant Who Works for Elderweyer Corporation Signed

question 21

Multiple Choice

A new staff accountant who works for Elderweyer Corporation signed a two-year employment contract.This contract states that it "shall be renewed annually,at a salary increase of 15%,as long as the employee has complied with all companies policies throughout the year." One such company policy states that "employees may not participate as informants,and not materially assist others as informants,under any whistleblower program that pays compensation for information that may lead to adverse consequences for Elderweyer Corporation." This company policy is:

• A) A sound business practice, from a public policy perspective
• B) Enforceable with regard to senior corporate officers, but not enforceable with regard to this new staff accountant
• C) Enforceable with regard to corporate officers who are able to influence the content of financial statements, but not enforceable with regard to this new staff accountant
• D) Not enforceable under any circumstances

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Definitions:

Monthly Cash Expenses

The total amount of cash spent by an individual or organization on various expenses within a month.

Internal Control

Procedures and processes implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.

Financial Statements

Reports that summarize the financial condition and operations of a business, including balance sheet, income statement, and cash flow statement.

FIFO

First-In, First-Out, an accounting method for managing inventory and financial matters where the oldest inventory items are sold or used first.