The Four Ethical Values That Firms Should Consider When Developing

question 34

True/False

The four ethical values that firms should consider when developing and/or modifying a code of ethics are integrity, justice, competence, and utility.

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Definitions:

Amortization

The gradual reduction of a debt over a period of time or the spreading out of capital expenses related to intangible assets over their useful life.

Matching Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they helped generate.

Depletion

The accounting process of allocating the cost of natural resources over their productive life, used in industries like mining, timber, and oil extraction.

Estimated Lives

The expected period over which an asset is anticipated to be usable by the company, affecting depreciation and amortization calculations.