Child labor is permitted and widely employed in Country X. A multinational company entering Country X decides to employ minors i
n its subsidiary, even though it is against the multinational's home-country ethics. Which of the following approaches to business ethics would justify the actions of the multinational company? a. righteous moralistb. cultural relativismc. the justice theoryd. the rights theory
Cultural relativism is the ability to understand a culture on its own terms without making judgments using the standards of one’s own culture. This is based on the idea that there is no superior standard of good or evil, so every judgment about right and wrong is a product of society.
Accruals basis accounting (accruals accounting, the matching concept) depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts or payments occur in a different period.
Revenue from sales and other income should be reported in the period when the income arises (which might not be the same as the period when the cash is received from the customer / client).
Based on the above discussion it can be concluded that the Portie's practice is an example of accrual basis of accounting.
