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Question3 Opportunistic use of accounting standards in which debt financing is kept off the borrowing firm’s balance sheet is ethically problematic primarily because it violates: Confidentiality, by disclosing too much information Courage, by failing to resist client pressure Professional behaviour, by obeying outdated rules Prudence, by ignoring caution Justice, by distorting the rightful due of shareholders ResetMaximum marks: 1 Flag question undefined
Options
A.Confidentiality, by disclosing too much information
B.Courage, by failing to resist client pressure
C.Professional behaviour, by obeying outdated rules
D.Prudence, by ignoring caution
E.Justice, by distorting the rightful due of shareholders
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Step-by-Step Analysis
To analyze the question, I will evaluate what each option claims about the ethical violation involved in opportunistic use of accounting standards to keep debt off the balance sheet.
Option 1: 'Confidentiality, by disclosing too much information' suggests that the issue is sharing too much information. However, the core problem here is not about disclosing information to others, but about concealing information to mislead stakeholders. So this......Login to view full explanationLog in for full answers
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