Affects of declaring dividends and liquidating

True False Two factors that typically lead to ethical violations are relevance and timeliness of accounting information.

affects of declaring dividends and liquidating-70

True False Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management.

True False Proper ethical conduct implies that you only consider what’s in your best interest.

True False The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.

True False The main objective for all business is to maximize unrealized profits.

True False Chapter 1: Introduction to Accounting and Business No significant differences exist between the accounting standards issued by the FASB and the IASB.

True False Generally accepted accounting principles regulate how and what financial information is reported by businesses.

True False The primary role of accounting is to determine the amount of taxes a business will be required to pay to taxing entities.

True False The basic difference between manufacturing and merchandising companies is the completion level of the products they purchase for resale to customers.

True False The accounting equation can be expressed as Assets – Liabilities = Owner’s Equity.

True False The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners.

We argue that when managers have private information about the productivity of assets under their control and receive private benefits, substantial bonuses are required to induce less productive managers to declare that capital should be reallocated.

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