Answer the following statements true (T) or false (F)
With SFAS No. 95, the FASB chose to follow the entity model rather than the traditional income statement (proprietary) approach.
ANSWER: F
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Ron and Yin are welders working for two different divisions of the same company. Both have the same level of experience. However, Ron earns more than Yin. Under the Fair Labor Standards Act (FLSA), which statement justifies the organization's decision to pay Ron more than Yin?
A. Ron lives in a location where living expenses are higher. B. Yin is younger than Ron. C. Ron is a U.S. citizen. D. Yin works the night shift. E. Yin is physically disabled.
Which of the following is a disadvantage of incentive compensation plans?
A. Employers are taxed heavily on their expenditure incurred through incentive plans. B. Employers are unable to increase employee productivity while following incentive plans. C. Employees know that a rise in productivity will have no impact on their compensation. D. Employees are taxed heavily on their income from incentive plans. E. Employees don't develop loyalty to their employers when incentive plans are practiced.
Ultimately, public relations is judged by its impact on society. Which one of the following is NOT considered a social benefit of public relations practice?
A. Public relations practitioners strive to develop recommendations concerning communication strategy in the marketing plan and help management relate decisions to corporate goals. B. By emphasizing the need for public approval, practitioners improve the conduct of the organizations they serve. C. Practitioners serve the public interest by making all points of view articulate in the public forum. D. Practitioners serve our segmented, scattered society by using their talents of communication and mediation to replace misinformation with information, discord with rapport. E. Ethical public relations practice contributes to clarification of public issues, not to distortion or obfuscation.
What is a faulty or invalid reason why a company's strategy should be ethical?
A. An unethical strategy reflects badly on the character of the company personnel involved. B. Customers shun companies known for their shady behavior and ethically upstanding company personnel are repulsed by a work environment where unethical behavior is condoned. C. A strategy that is unethical in whole or in part is morally wrong. D. An ethical strategy is in the self-interest of shareholders, partly because an unethical strategy can damage a company's reputation and partly because unethical behavior can be very costly in terms of fines and penalties. E. Senior executives fear public embarrassment and disciplinary action if caught doing something perceived as unethical.