An Organization Faces Many Challenges When Implementing an Environmental Accounting

question 53

Multiple Choice

An organization faces many challenges when implementing an environmental accounting (EMA) system. Which of the following inherent challenges is an accountant facing when he is having difficulty finding literature regarding "best practices" for environmental accounting?

• A)Hidden Cost
• B)Communication issue
• C)Newness of EMA
• D)Historical orientation of accounting

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Definitions:

Income Ratio

A financial metric that compares various income streams of a business to a key metric such as sales, to evaluate performance.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet until they are consumed or used.

Indirect Method

A method of presenting the operating activities section of the statement of cash flows that adjusts net income to compute cash flows from operating activities.

Net Income

The net income of a company, which is the remaining amount of total revenue after deducting all expenses and taxes.