GOVERNANCE DOF CH3

Accounting adjustment

Accounting adjustment

- an accounting journal entry that is posted in the books a 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 or accounts.

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 a broad discipline that attempts to address improper attitude 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 organization.

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; computed by dividing current assets by current liabilities.

Dividends

- amounts received by shareholders on their share capital by virtue of the company's generated profit.

Ethics

- pertains to values, norms, and beliefs that determine how people behave in everyday life; derived from the Greek word "ethos."

illegal acts

- are actions of the corporation, as a legal entity, as well as actions of corporate officers and employees that are contrary to prevailing laws and government 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 government agency that supervises and monitors the actions, compliance, and performance of a company. Examples of regulators are the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), and the 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 not declaring revenue or income, or understating 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.