CHAPTER 3

• Accounting Adjustment


  An accounting journal entry that is posted in the books of accounts to update the balances of accounts
• Accounting Reclassification


  An accounting journal entry that needs to be posted in the books of accounts in order to correct a misclassified account/s
• Bribery


  The giving or offering of any item of value to influence the actions of a government official or personnel
• Business Ethics


  The application of ethical principles and standards in a business environment. It is broad discipline that attempts to address improper attitudes and actions that could be detrimental to the company
• Confidential Information


  Discreet information about the company that must not be divulged to unauthorized persons
• Conflict of Interest


  Occurs when one can take advantage of his/her position to obtain an unjust benefit to the detriment of the employing org
• Corporate social responsibility


  Is concerned with the responsibilities and obligations of businesses to people, communities, and the society around them
• Cybercrime


  Crime committed by hackers and cybercriminals through the use of computers to obtain illegal or unjust benefits
• Credit Rating


  The assessment of a borrower's ability to pay financial obligations
• Current ratio


  Liquidity ratio that measures the ability to pay the company's current liabilities
• Dividends


  Amounts received by shareholders on their share capital by virtue of the company's generated profit
• Ethics


  Pertains to values, norms, beliefs that determine how people behave in everyday life; Greek: "ethos"
• Illegal acts


  Actions of the corporation, as a legal entity, as well as actions of corporate officers and employees that are contrary to prevailing laws and govt regulations
• Money laundering


  The illegal act of concealing and converting money obtained from illegal source in order to show that it was generated legally
• Patent Infringement


  The illegal act of making and/or selling a product that is patented by another company
• Regulator


  A govt. agency that supervises and monitors the actions, compliance, and performance of a company
• Regulators


  • Securities and Exchange Commission (SEC)
  • Bangko Sentral ng Pilipinas (BSP)
  • Insurance Commission (IC)
• Stock Price


  The quoted price of a share of stock of a company on a stock market such as the Philippine Stock Exchange
• Tax Evasion


  The act of note declaring revenue or income, or understanding said revenue or income in order to illegally reduce taxes
• Trade Secret


  A confidential information about a secret process or procedure of a company
• Unauthorized commissions


  Amounts paid to corporate officers or employees that are not authorized by the company
• Violation of labor and social security laws

  • Paying employee wages below the minimum wage rate
  • Failure to pay for employees social security employees
• Insider Trading


  Corporate officers buy and sell company shares by taking advantage of information that is not disclosed yet to the public
• Violation of environmental laws

  Not implementing anti-pollution devices