Accounting Ethics Exam 1 Homework
Questions and Answers
Janice is a staff accountant in the accounting firm of Obama and Biden. She i assigned
to the audit of HealthCare Associates. One the very first day, Janice noticed that the
accounting manager of the client took money out of the petty cash fund and put it in his
pocket. The best action for Janice to take is: - ANSWER-inform her immediate
supervisor of what she observed.
The relationship between legal and ethical can best be expressed as: - ANSWER-
ethical behavior requires us to do more than required by the law and less than the law
allows.
Teleology deals with: - ANSWER-consequences of actions.
Kelly is the controller of a small company. One day, the CFO comes in and tells her to
lower the estimate of uncollectible accounts receivable. Kelly insists her numbers are
correct as is. The CFO tells her it will mean her job at the company if she doesn't go
along with the smaller estimate. The primary virtue that
would enable Kelly to resist the pressure to manipulate the number is: - ANSWER-
integrity.
In the Cleveland Custom Cabinets case, the owner of the company thought it was all
right to manipulate the financial statement numbers primarily because: - ANSWER-he
was the sole owner of the company and controlled to board of directors.
Under the IMA's standards of ethical practice, an accounting professional can consider
informing authorities or individuals not employed by the organization when an ethical
dilemma occurs about an accounting or financial reporting matter that remains
unresolved if he/she: - ANSWER-believes there is a clear violation of the law.
The credibility standard in the Statement of Ethical Professional Practice of the IMA
requires that an accounting professional should: - ANSWER-(1) communicate
information fairly and objectively; (2) disclose all relevant information that might affect
the users of the financial statements, and; (3) disclose delates or deficiencies in
information, timeliness, processing or internal controls.
Virtue ethics emphasizes development of good habits of character. What should be the
greatest reward of practicing good habits of character, according to MacIntyre? -
ANSWER-Internal rewards
Which of the following is true of the relationship between civility and ethics? - ANSWER-
One can be both civil and unethical.
, In the Shifty Industries case, the primary ethical issue can be stated as: - ANSWER-
whether an accountant should claim a higher section 179 deduction ($100,000) than
allowed by law.
Which of the following is false of active social networkers? - ANSWER-They are less
likely to blow the whistle than coworkers.
A difficult choice between two moral principles that are in conflict with one another is
known as an" - ANSWER-ethical dilemma.
In the Capitalization versus Expensing case, the main ethical issue is whether Gloria
Hernandez should: - ANSWER-capitalize or expense one millions dollars of
expenditures.
Virtue ethics is: - ANSWER-doing what is right.
Eddie paid an $8 restaurant check with a $10 bill. The waitress gave him $12 back. The
most ethical action for Eddie is to: - ANSWER-inform the waitress of her overpayment.
Greatest good for the greatest number of people is the theory of: - ANSWER-
utilitarianism.
In the Better Boston Beans case, what is the ethical dilemma facing Cyndie? -
ANSWER-Trust of co-worker versus the honesty of the workplace.
Using ethical reasoning, who is at fault in the Harvard Cheating scandal case? -
ANSWER-(1) The professor; (2) teaching assistants, and; (3) the students who cheated.
Bob is being pressured by his superior to go along with improper accounting and told he
is expected to be a team player. Which of the following statements best characterizes
those expectations? - ANSWER-Loyalty
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes: -
ANSWER-the importance of whistleblowing in decision making.
The method of ethical reasoning that requires selecting the correct moral rule that
produces the greatest benefits over harm is: - ANSWER-rule utilitarianism.
Deontology deals with: - ANSWER-rights of others and duties toward them.
Objectivity requires that a CPA should: - ANSWER-maintain a mental attitude of
intellectual honesty and impartiality.
When an employee is given a job evaluation, he has a right to expect: - ANSWER-fair
evaluations.
Questions and Answers
Janice is a staff accountant in the accounting firm of Obama and Biden. She i assigned
to the audit of HealthCare Associates. One the very first day, Janice noticed that the
accounting manager of the client took money out of the petty cash fund and put it in his
pocket. The best action for Janice to take is: - ANSWER-inform her immediate
supervisor of what she observed.
The relationship between legal and ethical can best be expressed as: - ANSWER-
ethical behavior requires us to do more than required by the law and less than the law
allows.
Teleology deals with: - ANSWER-consequences of actions.
Kelly is the controller of a small company. One day, the CFO comes in and tells her to
lower the estimate of uncollectible accounts receivable. Kelly insists her numbers are
correct as is. The CFO tells her it will mean her job at the company if she doesn't go
along with the smaller estimate. The primary virtue that
would enable Kelly to resist the pressure to manipulate the number is: - ANSWER-
integrity.
In the Cleveland Custom Cabinets case, the owner of the company thought it was all
right to manipulate the financial statement numbers primarily because: - ANSWER-he
was the sole owner of the company and controlled to board of directors.
Under the IMA's standards of ethical practice, an accounting professional can consider
informing authorities or individuals not employed by the organization when an ethical
dilemma occurs about an accounting or financial reporting matter that remains
unresolved if he/she: - ANSWER-believes there is a clear violation of the law.
The credibility standard in the Statement of Ethical Professional Practice of the IMA
requires that an accounting professional should: - ANSWER-(1) communicate
information fairly and objectively; (2) disclose all relevant information that might affect
the users of the financial statements, and; (3) disclose delates or deficiencies in
information, timeliness, processing or internal controls.
Virtue ethics emphasizes development of good habits of character. What should be the
greatest reward of practicing good habits of character, according to MacIntyre? -
ANSWER-Internal rewards
Which of the following is true of the relationship between civility and ethics? - ANSWER-
One can be both civil and unethical.
, In the Shifty Industries case, the primary ethical issue can be stated as: - ANSWER-
whether an accountant should claim a higher section 179 deduction ($100,000) than
allowed by law.
Which of the following is false of active social networkers? - ANSWER-They are less
likely to blow the whistle than coworkers.
A difficult choice between two moral principles that are in conflict with one another is
known as an" - ANSWER-ethical dilemma.
In the Capitalization versus Expensing case, the main ethical issue is whether Gloria
Hernandez should: - ANSWER-capitalize or expense one millions dollars of
expenditures.
Virtue ethics is: - ANSWER-doing what is right.
Eddie paid an $8 restaurant check with a $10 bill. The waitress gave him $12 back. The
most ethical action for Eddie is to: - ANSWER-inform the waitress of her overpayment.
Greatest good for the greatest number of people is the theory of: - ANSWER-
utilitarianism.
In the Better Boston Beans case, what is the ethical dilemma facing Cyndie? -
ANSWER-Trust of co-worker versus the honesty of the workplace.
Using ethical reasoning, who is at fault in the Harvard Cheating scandal case? -
ANSWER-(1) The professor; (2) teaching assistants, and; (3) the students who cheated.
Bob is being pressured by his superior to go along with improper accounting and told he
is expected to be a team player. Which of the following statements best characterizes
those expectations? - ANSWER-Loyalty
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes: -
ANSWER-the importance of whistleblowing in decision making.
The method of ethical reasoning that requires selecting the correct moral rule that
produces the greatest benefits over harm is: - ANSWER-rule utilitarianism.
Deontology deals with: - ANSWER-rights of others and duties toward them.
Objectivity requires that a CPA should: - ANSWER-maintain a mental attitude of
intellectual honesty and impartiality.
When an employee is given a job evaluation, he has a right to expect: - ANSWER-fair
evaluations.
