c) In 2019, Zain Oil company was being sued for damages the seaside because its chemical material dropped to the sea. The settlement of which could threaten the financial stability of the company. The company decided to choose non-disclosure with the hope that its lawyer may win the case at court. d) In 2018 AXA Company faced serious liqu

Business/Professional Ethics Directors/Executives/Acct
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Chapter8: Subprime Lending Fiasco-ethics Issues
Section: Chapter Questions
Problem 8.1EC
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b) Oman Flour Company provides its top managers with bonus on the basis of reported
profit. During 2018 the management showed a decline in the final profit. In order to
continue paying bonus the company attempt to adopt different accounting policies that
resulted in higher profits.
c) In 2019, Zain Oil company was being sued for damages the seaside because its
chemical material dropped to the sea. The settlement of which could threaten the
financial stability of the company. The company decided to choose non-disclosure with
the hope that its lawyer may win the case at court.
d) In 2018 AXA Company faced serious liquidity problems. Management decided to
window dress the financial statements in a manner that improved the company's current
ratios
in order to hide the liquidity problem of the situation. However, in 2019 the company came out of liquidity problem and stopped window dressing practice.

You are required to identify and explain in brief the suitable qualitative characteristics of
useful financial information for each case.

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