An Unethical Act

question 3

Multiple Choice

An unethical act:

• A) Is always illegal as well
• B) Is not necessarily illegal
• C) Must, at minimum, violate a government regulation
• D) Is determined for the accounting profession by the FASB

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Definitions:

Disclosed Basis of Accounting

Refers to a specific accounting practice that a company uses and discloses to its readers, offering clarity on how its financial statements are prepared.

IFRS

International Financial Reporting Standards are globally accepted principles for financial reporting to ensure transparency, accountability, and efficiency.

Business Organizations

Structured entities formed to pursue commercial activities, with various legal forms including partnerships, corporations, and sole proprietorships.

Reporting Standards

Regulations and guidelines that govern the financial reporting process, ensuring the accuracy and consistency of financial statements.