To Act Ethically,a Person Always Must

question 21

Multiple Choice

To act ethically,a person always must:

• A) Follow the formal expression of a law
• B) Follow both the spirit and the formal expression of a law
• C) Do the right thing, even if violates a law
• D) Adhere to the spirit, intent, and formal expression of a law

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Definitions:

Accrual Basis

An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged, offering a more accurate financial picture.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Cash Receipts

The total amount of cash received by a business during a specified period.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, used to evaluate its financial health.