Suppose that a fictitious toy company knowingly manufactured educational toys made from dangerous materials, while at the same time donating large sums to a nonprofit organization researching educational techniques. Which of the following is a correct statement?
1. The firm is behaving unethically but is socially responsible.
2. The firm is behaving ethically and is socially responsible.3. A firm behaving unethically cannot be socially responsible.
4. A socially responsible firm cannot behave unethically.5. The firm is behaving ethically but is not socially responsible.

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

In a chapter 7 bankruptcy, a debtor:

Aprofessional does specialized work that's primarily: degree based. medical or legal. well paying. intellectual and creative