Which of the Following Cases Describes an Agreement of Ethics

question 74

Multiple Choice

Which of the following cases describes an agreement of ethics and laws?

• A) a company outsourcing its jobs to a foreign country
• B) a person being penalized for bribing a judge to give the verdict in the person's favor
• C) a company not spending more money to keep its emission rates below the legal standard
• D) a person hiring an illegal alien worker belonging to a destitute family

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Definitions:

Unamortized Acquisition Differential

The portion of the difference between the acquisition cost of an asset and its carrying value on the balance sheet that has not yet been amortized.

Equity Method

A method of accounting whereby an investor records its investment in an associate company at initial cost and subsequently adjusts the carrying amount of the investment to recognize the investor's share of the earnings or losses of the associate.

Amortization

The gradual reduction of a debt or the allocation of the cost of an intangible asset over a period.

Cost Method

An accounting approach for investments where the investment is recorded at cost, and income is recognized only when dividends are received.