Financial Reporting of Net Earnings and Retained Earnings

question 60

Essay

Financial reporting of net earnings and retained earnings
The 2012 annual report of Kirtland Products disclosed net earnings of approximately $87 million for the fiscal year ending March 31, 2012, and retained earnings of approximately $485 million as of March 31, 2012.
(a) Which financial statement shows computation of the net earnings?
(b) Which financial statement includes the retained earnings figure of $485 million?
(c) Explain why Kirtland reports $87 million as net earnings, but a much larger amount, $485 million, as retained earnings.

Comprehend the ethical considerations in the exercise of power and influence in organizations.

Understand how political behavior influences organizational dynamics.

Identify tangible symbols of power within an organization according to Michael Korda.

Distinguish between various influence tactics and their effective use.

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Definitions:

Individualism View

A perspective that emphasizes the moral worth of the individual, prioritizing personal independence and self-expression.

Ethical Behaviour

The practice of conducting oneself according to recognized moral principles and standards, often in a professional or business environment.

Society

A large group of individuals living together in a more or less ordered community, sharing customs, laws, and organizations.

Performance Appraisals

The systematic evaluation of employee performance against predetermined standards or objectives.