2. Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $36,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $3,000. What is the depreciation cost per unit? (Points : 3)        $3.30        $3.60        $.33        $.36 5. In most companies, current liabilities are paid within (Points : 3)        one year through the creation of other current liabilities.        the operating cycle through the creation of other current liabilities.        one year or the operating cycle out of current assets.        the operating cycle out of current assets. Question 6. 6. Cash receipts from interest and dividends are classified as (Points : 3)        financing activities.        investing activities.        operating activities.        either financing or investing activities. Question 7. 7. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that (Points : 3)        bond interest is deductible for tax purposes.        interest must be paid on a periodic basis regardless of earnings.        income to stockholders may increase as a result of trading on the equity.        the bondholders do not have voting rights. 9. If a company has both an inflow and outflow of cash related to property, plant, and equipment, the (Points : 3)        two cash effects can be netted and presented as one item in the investing activities section.        cash inflow and cash outflow should be reported separately in the investing activities section.        two cash effects can be netted and presented as one item in the financing activities section.        cash inflow and cash outflow should be reported separately in the financing activities section. Question 10. 10. With an interest-bearing note, the amount of assets received upon issuance of the note is generally (Points : 3)        equal to the note's face value.        greater than the note's face value.        less than the note's face value.        equal to the note's maturity value. 13. When stock dividends are distributed, (Points : 3)        Common Stock Dividends Distributable is decreased.        Retained Earnings is decreased.        Paid-in Capital in Excess of Par is debited if it is a small stock dividend.        no entry is necessary if it is a large stock dividend. Question 14. 14. Of the items below, the one that appears first on the statement of cash flows is (Points : 3)        noncash investing and financing activities.        net increase (decrease) in cash.        cash at the end of the period.        cash at the beginning of the period. Question 15. 15. Moreno Company purchased equipment for $675,000 on January 1, 2011, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $30,000 salvage value at the end of its useful life. T.

1. 2. Mott Company uses the units-of-activity method in
computing depreciation. A new plant asset is purchased for
$36,000 that will produce an estimated 100,000 units over its
useful life. Estimated salvage value at the end of its useful life
is $3,000. What is the depreciation cost per unit? (Points : 3)
$3.30
$3.60
$.33
$.36
5. In most companies, current liabilities are paid within (Points
: 3)
one year through the creation of other current liabilities.
the operating cycle through the creation of other current
liabilities.
one year or the operating cycle out of current assets.
the operating cycle out of current assets.
Question 6. 6. Cash receipts from interest and dividends are
classified as (Points : 3)
financing activities.
investing activities.
operating activities.
either financing or investing activities.
Question 7. 7. From the standpoint of the issuing company, a
disadvantage of using bonds as a means of long-term financing
is that (Points : 3)
bond interest is deductible for tax purposes.
interest must be paid on a periodic basis regardless of
earnings.
income to stockholders may increase as a result of trading
on the equity.

2. the bondholders do not have voting rights.
9. If a company has both an inflow and outflow of cash related
to property, plant, and equipment, the (Points : 3)
two cash effects can be netted and presented as one item in
the investing activities section.
cash inflow and cash outflow should be reported separately
in the investing activities section.
two cash effects can be netted and presented as one item in
the financing activities section.
cash inflow and cash outflow should be reported separately
in the financing activities section.
Question 10. 10. With an interest-bearing note, the amount of
assets received upon issuance of the note is generally (Points :
3)
equal to the note's face value.
greater than the note's face value.
less than the note's face value.
equal to the note's maturity value.
13. When stock dividends are distributed, (Points : 3)
Common Stock Dividends Distributable is decreased.
Retained Earnings is decreased.
Paid-in Capital in Excess of Par is debited if it is a small
stock dividend.
no entry is necessary if it is a large stock dividend.
Question 14. 14. Of the items below, the one that appears first
on the statement of cash flows is (Points : 3)
noncash investing and financing activities.
net increase (decrease) in cash.
cash at the end of the period.
cash at the beginning of the period.

3. Question 15. 15. Moreno Company purchased equipment for
$675,000 on January 1, 2011, and will use the double-declining-
balance method of depreciation. It is estimated that the
equipment will have a 3-year life and a $30,000 salvage value at
the end of its useful life. The amount of depreciation expense
recognized in the year 2013 will be (Points : 3)
$75,000.
$45,000.
$81,660.
$51,660.
Question 16. 16. Corporations generally issue stock dividends
in order to (Points : 3)
increase the market price per share.
exceed stockholders' dividend expectations.
increase the marketability of the stock.
decrease the amount of capital in the corporation.
19. A factor which distinguishes the corporate form of
organization from a sole proprietorship or partnership is that a
(Points : 3)
corporation is organized for the purpose of making a profit.
corporation is subject to more federal and state government
regulations.
corporation is an accounting economic entity.
corporation's temporary accounts are closed at the end of
the accounting period.
Question 20. 20. Investors who receive checks in their names
for interest paid on bonds must hold (Points : 3)
registered bonds.
coupon bonds.
bearer bonds.
direct bonds.

4. Question 21. 21. The best managed companies will have (Points
: 3)
no uncollectible accounts.
a very strict credit policy.
a very lenient credit policy.
some accounts that will prove to be uncollectible.
23. Significant noncash transactions would not include (Points :
3)
conversion of bonds into common stock.
asset acquisition through bond issuance.
treasury stock acquisition.
exchange of plant assets.
Question 24. 24. Under the corporate form of business
organization (Points : 3)
a stockholder is personally liable for the debts of the
corporation.
stockholders' acts can bind the corporation even though the
stockholders have not been appointed as agents of the
corporation.
the corporation's life is stipulated in its charter.
stockholders wishing to sell their corporation shares must
get the approval of other stockholders.
Question 25. 25. Bad Debts Expense is considered (Points : 3)
an avoidable cost in doing business on a credit basis.
an internal control weakness.
a necessary risk of doing business on a credit basis.
avoidable unless there is a recession.
Question 26. 26. The allowance method of accounting for
uncollectible accounts is required if (Points : 3)

5. the company makes any credit sales.
bad debts are significant in amount.
the company is a retailer.
the company charges interest on accounts receivable.
27. Stockholders of a company may be reluctant to finance
expansion through issuing more equity because (Points : 3)
leveraging with debt is always a better idea.
their earnings per share may decrease.
the price of the stock will automatically decrease.
dividends must be paid on a periodic basis.
Question 28. 28. The board of directors must assign a per share
value to a stock dividend declared that is (Points : 3)
greater than the par or stated value.
less than the par or stated value.
equal to the par or stated value.
at least equal to the par or stated value.
Question 29. 29. An employee authorized to sign checks should
not record (Points : 3)
owner cash contributions.
mail receipts.
cash disbursement transactions.
sales transactions.
31. A credit balance in Cash Over and Short is reported as a(n)
(Points : 3)
asset.
liability.
miscellaneous expense.
miscellaneous revenue.
Question 32. 32. A petty cash fund of $100 is replenished when
the fund contains $4 in cash and receipts for $94. The entry to

6. replenish the fund would (Points : 3)
credit Cash Over and Short for $2.
credit Miscellaneous Revenue for $2.
debit Cash Over and Short for $2.
debit Miscellaneous Expense for $2.
Question 33. 33. The size of the petty cash fund is dependent on
(Points : 3)
the wishes of the custodian of the fund.
anticipated disbursements for the year.
anticipated disbursements for a three- to four-week period.
the size of the regular cash account.
Question 34. 34. A note payable is in the form of (Points : 3)
a contingency that is reasonably likely to occur.
a written promissory note.
an oral agreement.
a standing agreement.
35. If a corporation issued $3,000,000 in bonds which pay 10%
annual interest, what is the annual net cash cost of this
borrowing if the income tax rate is 30%? (Points : 3)
$3,000,000
$90,000
$300,000
$210,000
MultipleChoice
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0

7. 334079137
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24
0
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0
31
0
334079142
MultipleChoice
13
0
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334079143
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0

8. 334079146
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MultipleChoice
23
0
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17
32
0
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2
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9. 334079154
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4
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10. 20
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RUNNING HEADER: Business Ethics 1
Business Ethics
Bribery and Corporate Social Responsibility
Jessica M. Otero

11. Rasmussen College
Author’s Note
This research is being submitted on December 8, 2013 for
Business Ethics course before Dr. Chris at Rasmussen College.
A bribe is a financial or other inducement or reward that is
sought, offered, promised or provided with the intention of
gaining any commercial, contractual, or personal advantage. We
have set out below some examples to assist you so you are
better equipped to understand what a bribe may consist of.
Examples of Bribery
Offering a bribe
You offer a potential client tickets to a major sporting event,
but only if they agree to do business with us. This would be an
offence as you are making the offer to gain a commercial and
contractual advantage. We may also be found to have committed
an offence because the offer has been made to obtain business
for us. It may also be an offence for the potential client to
accept your offer.
Receiving a bribe
A supplier gives your nephew a job, but makes it clear that in
return they expect you to use your influence in our organization
to ensure we continue to do business with them.
It is an offence for a supplier to make such an offer. It would be
an offence for you to accept the offer as you would be doing so
to gain a personal advantage.
Bribing a foreign official
You arrange for the business to pay an additional payment to a
foreign official to speed up an administrative process, such as
clearing our goods through customs. The offence of bribing a
foreign public official has been committed as soon as the offer
is made. This is because it is made to gain a business advantage

12. for us. We may also be found to have committed an offence.
Individuals who bribe or receive bribes can receive a prison
sentence of up to ten years as well as an unlimited fine. If
International Group Limited and its associated companies are
found to have taken part in bribery or fails to put in place
adequate procedures designed to prevent bribery, we could face
an unlimited fine, be excluded from tendering for public
contracts and face damage to our reputation. We therefore take
our legal responsibilities very seriously.
Business ethics are the moral compass used to guide the
direction of all business activities. They are a by-product of the
society’s culture and beliefs which form a big part of the law.
Business ethics are based on one major tenet; integrity.
Integrity ensures that at all times the morally correct action is
taken to promote fairness and justice (Donaldson, 1999).
Bribery means that one pays to get preferential treatment as
opposed to what the predetermined treatment they should be
awarded. In business, bribery is most of the times in the form of
exchange of monetary incentives in order to have some
conditions overlooked or have some laws bent in the
perpetrators favour (Paine, 2005).
Thesis statement: Increase in bribery cases in the business
world has led to increase in substandard goods and services in
the market.
Increase bribery allows for commercial enterprises to function
illegally either in terms of the conditions of their company or in
terms of the product they sell to the people. This explains the
major change in consumerism. Contemporary consumerism is
the based on informed consumers, it is characterised by the
economic, social and cultural order of issues and how they
affect the PR of a company and its product (Crew, 2010).
Bribery ensures the following:
1. It reduces the trust that the public, who form the market for
products, in law and business practices. This leads to extreme
acts in consumerism like suing companies.
2. Decreases competition and reduces invention and innovation

13. by the employees leaving very many opportunities untapped.
3. Giving unfair advantage to some businesses and some people
creates unfavourable commercial environment that is not based
on technical qualification. The quality of products decreases ad
so does the market for the product.
At an individual level bribery limits the potential of a person;
this is because human beings are competitive beings that
perform better when stakes are heightened. When one knows
that they can easily bribe themselves out of or into a situation,
then they make no effort (Paine, 2005). At a corporate and
societal level it has led to lack of trust and responsibility to the
community. This means business is no longer based on mutual
goals and objectives, but it is based on personal benefit.
The moral virtue theory is based on the premise that we all have
a moral obligation to the society. This is because we live in a
social world where interdependence is a result of our
interactions (Bellah, 1973). Businesses have an obligation to
offer consumers the best products rather than allow for
substandard products to be supplied to the market. Bribery
makes it seem like all the underlying problems have been
solved.
Corporate and social responsibility should not be based on the
philanthropy by corporate firms, it should be a duty. Social and
corporate responsibility is based on the premise that we are all
aware of the effects our actions have on the environment and on
other people and what we are willing to do to ensure there is no
negative effects.
Duty and responsibility are not separable. According to duty
theory, we all have a duty to be the best we can and make the
surrounding to be the same. In this case, the law should guide
businesses and no one should get any favours that they do not
deserve because they have the power to “buy it” (Hunt, 2005).
Business ethics are based on the fact that a business will not
knowingly sell substandard goods to the public in order to
increase their profits.
Corporate and social responsibility has become something that

14. most firms use to hide their malpractices which is on the rise.
A company will get sponsor ‘Going Green’ projects to take the
public attention away from the poor working conditions and
labour exploitation that the company is involved in (Donaldson,
1999). However, currently, we are in an era where consumerism
is based on proper knowledge of a market and the products;
consumers can no longer be manipulated (McWilliams, 2000).
Consumerism is the based on informing consumers about a
product, it is characterized by the economic, social and cultural
order of issues and how they affect the PR of a company and its
product (McWilliams, 2000). Business ethics is based on
making the morally sound judgement that is fair and just at all
times, however in an effort of being cost effective most firms
end up adapting unethical practices and covering them up using
corporate responsibility. The following are some of the
examples:
4. Nike Shoe Company- in an effort to decrease production and
labour cost, the company outsourced labour in Thai, later the
plant was relocated there, however while the company was
campaigning against deforestation and sponsoring projects on
the same. Its labourers went on strike due to low salaries, poor
working conditions and sexual harassment (Frisch, 2008).
5. De Beers- is a diamond selling cartel based in America,
before it was exposed for being involved in the blood diamonds
saga was willing to buy and sell diamonds acquired from
slavery and war. Yet the company is in the forefront of
campaigning against global warming practices by businesses.
6. Currently the McDonald Inc. issue- the company is busy
campaigning against poor employee treatment while the its
menu is made up of foods that are likely to cause its consumers
lifestyle diseases like obesity and high blood pressure (Love,
2000).
At an individual level, deceitful corporate responsibility has
made consumers to be more cautious and become more informed
about the products they purchase, this is more of a protective
mechanism. At a corporate and societal level, it has led to lack

15. of trust and responsibility to the community. This means
business is no longer based on mutual goals and objectives, but
it is based on personal benefit just like bribery.
Corporate responsibility in the contemporary society is based on
trying to convert a negative PR to a positive PR, not on the
basis of giving back to the same society that the business
depends on. However due to the ease of getting information and
change in the dimension of the consumerism makes their efforts
to be fruitless.
Recommendation: Instead of companies getting involved in
immoral practices while covering up with corporate and social
responsibility actions. They should simply practice business
ethics at all times, because in an effort of being cost effective,
in the long run they lose much more and the damage is
irreplaceable. A good example is the Nike Shoe Company, it has
never returned to its previous glory after the scandal it was
involved in.
Even though bribery is unethical and exposes the consumer to
harm through the production and sale of illegally manufactured
goods, there is a down side to it. As earlier stated, ethics are a
product of culture and beliefs, this means change in culture and
belief leads to change in business ethics, so most of the times
business ethics is all about doing what is currently considered
being right (Hunt, 2005). This is a challenge to companies
especially when they are structured in a non-flexible way.
Corporate and social responsibility has become something that
most firms use to hide their malpractices; this is on the rise. A
company will get sponsor ‘Going Green’ projects to take the
public attention away from the poor working conditions and
labour exploitation that the company is involved in (Donaldson,
1999). However currently, we are in an era where consumerism
is based on proper knowledge of a market and the products;
consumers can no longer be manipulated (McWilliams, 2000).
With an eye on the environment and social issues, many
businesses are no longer solely focused on turning a profit. A

16. top priority for many organizations today is corporate social
responsibility, which focuses on how businesses deal with their
environmental, social and economic impacts.
Practicing social responsibility also pays off financially for
many companies. A study from the University of Iowa found
that businesses that make greater investments in corporate
social responsibility initiatives see less risk in their stock prices
during economic downturns. In essence, it pays off to do the
basic right thing. If more businesses would balance social
responsibility while running their company honorably, services
would improve, profits would increase and quality products
would be purchased.
References
Bellah, N. R. Durkheim, E. (1973). Emile Durkheim on
Morality and Society, Oxford University Press, New York
Crew, A. (2010). Bribes and Bribery in Business, Orthodox
Print Press, New York
Donaldson, T. Dunfee, W. T. (1999). Ties That Bind: A Social
Contracts Approach to Business Ethics, Colombia Publishers
Hunt, A. J. Laszlo, S. (2005). Bribery: Who Pays, who refuses,
what are the payoffs? Random House Publishers
Paine, L. S. Bruner, M. C. (2005). Bribery in Business: A Legal
Perspective, Cambridge University Press, London
Frisch, A. (2008). The Story of Nike, University of Oklahoma,
Oklahoma
Love, F. J. (2008). McDonald’s: Behind the Arches, Oxford
University Press, New York
McWilliams, A. Siegel, D. (2000). Corporate social
responsibility: A theory of the firm perspective". Academy of
Management Review