ACCOUNTING ETHICS EXAM 1|| GRADED A+ FREE||150+ QNS
AND VERIFIED ANSWERS
Which of the following is NOT an element of trustworthiness according to the six pillars of Character?
A. Reliability
B. Loyalty
C. Fairness
D. Honesty
ANS>> C. Fairness
Utilitarian philosophers are divided into two types: act utilitarianism and
A. rule utilitarianism
B. egotistic utilitarianism
C. ethical utilitarianism
D. beneficial utilitarianism
ANS>> A. rule utilitarianism
The method of ethical reasoning that evaluates actions in terms of harms and benefits is:
A. Act Utilitarianism
B. Rights Theory
C. Justice
D. Virtue
ANS>> A. act utilitarianism
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes
,A. The importance of integrity in decision making
B. The importance of loyalty to one's superior
C. The importance of whistleblowing when financial wrongdoing exists
D. The importance of maintaining confidentiality
ANS>> A. the importance of integrity in decision making
The basic and fundamental beliefs that guide or motivate attitudes or actions are called:
A. relativism
B. egoism
C. morals
D. values
ANS>> D. Values
Which of the following elements does NOT make up an integral part of what is meant by "ethics"?
A. Accepted standards of behavior
B. Knowing the difference between right and wrong
C. Always following the law
D. The moral point of view
ANS>> C. Always following the law
The cognitive development approach refers to:
A. The thought process followed in one's moral development
B. The method of moral reasoning used in decision making
C. The exercise of professional judgment in decision making
D. The approach of giving voice to one's values
E. None of the above
,ANS>> A. The thought process followed in one's moral development
In stage 3 of Kohlberg's model, ethical reasoning is motivated by:
A. Satisfaction of one's needs
B. Acting in the best interests of others
C. Upholding the rights, values, and legal contracts of society
D. Acting based on universal principles
E. None of the choices
ANS>> B. Acting in the best interests of others
In the "Heinz and the Drug" case described in the chapter, if Heinz was reasoning at stage 5 he might
decide to steal the drug based on which of the following reasoning?
A. Heinz should steal the medicine because he will be much happier if he saves his wife, even if he has to
serve a prison sentence
B. Heinz should steal the medicine because his wife expects it
C. Heinz should steal the medicine because the law prohibits exceptions
D. Heinz should steal the medicine because everyone has a right to live regardless of the law
E. None of the choice
ANS>> D. Heinz should steal the medicine because everyone has a right to live regardless of the law
Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the
recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would
violate GAAP. If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:
A. Make a decision based on what is in her own best interests
B. Consider the interests of the stakeholders but decide based on what is in her best interests
C. Refuse to record the transaction as desired by the CFO
D. Inform the board of directors of the difference of opinion with the CFO
ANS>> C. Refuse to record the transaction as desired by the CFO
, Cognitive dissonance creates a problem that can be described as:
A. Inconsistency between thoughts and beliefs and our intended actions
B. Consistency between thoughts and beliefs and our intended actions
C. Reducing the importance of beliefs and attitudes on our actions
D. None of the choices
ANS>> A. Inconsistency between thoughts and beliefs and our intended actions
Section 404 of the Sarbanes-Oxley Act requires
A. The establishment of procedures to accept employee complaints
B. The principle executive to certify that they have reviewed the financial statements
C. A report of the company's internal control over financial reporting
D. Code of ethics requirements for senior officers
E. None of the choices are required in section 404
ANS>> C. A report of the company's internal control over financial reporting
An example of revenue overstatement is:
A. Manipulating reserves
B. Recording gross, rather than net, revenue
C. Reporting cost of sales as a non-operating expense
D. Deferring revenue
ANS>> B. Recording gross, rather than net, revenue
Corporate governance structures and relationships are shaped by internal and external mechanisms.
Which of the following is an external mechanism?
AND VERIFIED ANSWERS
Which of the following is NOT an element of trustworthiness according to the six pillars of Character?
A. Reliability
B. Loyalty
C. Fairness
D. Honesty
ANS>> C. Fairness
Utilitarian philosophers are divided into two types: act utilitarianism and
A. rule utilitarianism
B. egotistic utilitarianism
C. ethical utilitarianism
D. beneficial utilitarianism
ANS>> A. rule utilitarianism
The method of ethical reasoning that evaluates actions in terms of harms and benefits is:
A. Act Utilitarianism
B. Rights Theory
C. Justice
D. Virtue
ANS>> A. act utilitarianism
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes
,A. The importance of integrity in decision making
B. The importance of loyalty to one's superior
C. The importance of whistleblowing when financial wrongdoing exists
D. The importance of maintaining confidentiality
ANS>> A. the importance of integrity in decision making
The basic and fundamental beliefs that guide or motivate attitudes or actions are called:
A. relativism
B. egoism
C. morals
D. values
ANS>> D. Values
Which of the following elements does NOT make up an integral part of what is meant by "ethics"?
A. Accepted standards of behavior
B. Knowing the difference between right and wrong
C. Always following the law
D. The moral point of view
ANS>> C. Always following the law
The cognitive development approach refers to:
A. The thought process followed in one's moral development
B. The method of moral reasoning used in decision making
C. The exercise of professional judgment in decision making
D. The approach of giving voice to one's values
E. None of the above
,ANS>> A. The thought process followed in one's moral development
In stage 3 of Kohlberg's model, ethical reasoning is motivated by:
A. Satisfaction of one's needs
B. Acting in the best interests of others
C. Upholding the rights, values, and legal contracts of society
D. Acting based on universal principles
E. None of the choices
ANS>> B. Acting in the best interests of others
In the "Heinz and the Drug" case described in the chapter, if Heinz was reasoning at stage 5 he might
decide to steal the drug based on which of the following reasoning?
A. Heinz should steal the medicine because he will be much happier if he saves his wife, even if he has to
serve a prison sentence
B. Heinz should steal the medicine because his wife expects it
C. Heinz should steal the medicine because the law prohibits exceptions
D. Heinz should steal the medicine because everyone has a right to live regardless of the law
E. None of the choice
ANS>> D. Heinz should steal the medicine because everyone has a right to live regardless of the law
Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the
recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would
violate GAAP. If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:
A. Make a decision based on what is in her own best interests
B. Consider the interests of the stakeholders but decide based on what is in her best interests
C. Refuse to record the transaction as desired by the CFO
D. Inform the board of directors of the difference of opinion with the CFO
ANS>> C. Refuse to record the transaction as desired by the CFO
, Cognitive dissonance creates a problem that can be described as:
A. Inconsistency between thoughts and beliefs and our intended actions
B. Consistency between thoughts and beliefs and our intended actions
C. Reducing the importance of beliefs and attitudes on our actions
D. None of the choices
ANS>> A. Inconsistency between thoughts and beliefs and our intended actions
Section 404 of the Sarbanes-Oxley Act requires
A. The establishment of procedures to accept employee complaints
B. The principle executive to certify that they have reviewed the financial statements
C. A report of the company's internal control over financial reporting
D. Code of ethics requirements for senior officers
E. None of the choices are required in section 404
ANS>> C. A report of the company's internal control over financial reporting
An example of revenue overstatement is:
A. Manipulating reserves
B. Recording gross, rather than net, revenue
C. Reporting cost of sales as a non-operating expense
D. Deferring revenue
ANS>> B. Recording gross, rather than net, revenue
Corporate governance structures and relationships are shaped by internal and external mechanisms.
Which of the following is an external mechanism?
