Question

1. Triple bottom line accounting ?

can lower the quality of a company's performance

provides less financial information than single bottom line accounting

is widely used in public sector accounting.

No answer text provided.

2. The profitability of a company is likely to decrease when goals in such areas as ethical sourcing, recycling, diversity, and philanthropy are set.

True

False

Answer 1

1. Triple bottom line accounting ?

The correct answer is OPTION C i.e is widely used in public sector accounting.

Explanation

Triple bottom line accounting is a type of accounting which includes the three areas of accounting framework. These areas explains the effects of company's workings on social life(i.e society), environment (or ecology) and financial.

The TBL accounting is adopted by organizations to explain its workings and is basically adopted by public sector organizations.

The incorrect statements about Triple Bottom line accounting are :

• can lower the quality of a company's performance.
• provides less financial information than single bottom line accounting.

Hence the triple bottom line accounting is widely used in public sector accounting.

2. The profitability of a company is likely to decrease when goals in such areas as ethical sourcing, recycling, diversity, and philanthropy are set.

The above mentioned statement is false.

Explanation
Whenever any company sets its goals which are in areas as ethical sourcing, recycling, diversity, and philanthropy, such company always achieve greater profits then ever before. It may take a little while to show such profits but such goals never decreases the profits.

• Ethical sourcing helps in sustainable development and ensures the company that products are being sourced/obtained in a ethical way.
• Recycling helps the company to manufacture new products using the already used products and helps in protecting the environment too.
• Diversity increases the company's portfolio in its products and this way the company can earn more money.
• Philanthropy improves the company's goodwill and helps in fulfilling the corporate social responsibility.