Which of the Following Statements Describes the Decision Guidelines for an Ethical

question 136

Multiple Choice

Which of the following statements describes the decision guidelines for an ethical decision?

• A) Identify the ethical issue, specify alternatives, calculate the gain or loss on each alternative solution, and choose the solution with the smallest gain or highest loss.
• B) Identify the ethical issue, specify alternatives, consult the Code of Professional Conduct, and choose the solution which has the greatest benefit to the largest number of people.
• C) Identify the ethical issue, specify alternatives, assess the possible outcomes, and make the decision.
• D) Identify the ethical issue, consult an external auditor, and make the decision.

---

Definitions:

Non-Controlling Interests

The portion of equity in a subsidiary not attributable directly or indirectly to the parent company, sometimes referred to as minority interest.

Retained Earnings

Profits that a company retains for reinvestment in its operations, rather than distributing to shareholders as dividends.

Reporting Period

A specified duration of time for which an organization prepares its financial statements and reports to present its financial performance and position.

Tax Adjustments

Modifications made to financial statements to account for differences between accounting practices and tax regulations.