Which of the Following Statements Describes One of the Major

question 78

Multiple Choice

Which of the following statements describes one of the major reasons codes of ethics are violated?

• A)Most companies do not have a formal code of ethics.
• B)Most companies overlook infractions if the action is unethical but legal.
• C)Many codes of ethics lack specificity.
• D)There is often a discrepancy between the written code of ethics of a firm and the personal and moral beliefs of individual employees.
• E)There are very few violations in firms with written codes of ethics.

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Definitions:

Current Assets

Resources anticipated to be transformed into cash, sold, or used up within a year or throughout the usual operational cycle of the company.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Net Purchases

The total amount spent on purchases of goods for resale after subtracting any purchase returns, allowances, and discounts.

Operating Expenses

Costs associated with running a business's day-to-day operations, excluding the cost of goods sold.