Uncertainties Such as Doubtful Accounts

question 18

Multiple Choice

Uncertainties such as doubtful accounts

• A)Are not provisions because they are future events not arising out of past transactions
• B)Are provisions because they are future events arising from past transactions
• C)Should not be disclosed
• D)Are provisions because the amounts are uncertain
• E)Are not provisions since they relate to normal business activities

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Definitions:

Whistle-Blowers

Employees or individuals who expose unethical, illegal, or harmful practices within an organization to the public or to those in positions of authority.

Decision Errors

Mistakes made in the process of making choices, often due to incorrect information, poor analysis, or bias.

Groupthink

The capacity for group pressure to damage the mental efficiency, reality testing, and moral judgment of decision-making groups.

Dissension

Disagreement or conflict of opinion among a group of people.