ETHICAL OBLIGATIONS AND DECISION
MAKING IN ACCOUNTING TEXT AND CASES
PRACTICE TEST 2026 FULL SOLUTIONS
REVIEW PACK
◉ Ethics.
Answer: the principles of right and wrong that guide an individual in
making decisions
◉ Morals.
Answer: a person's standards of behavior or beliefs concerning what
is and is not acceptable for them to do.
◉ Values.
Answer: basic and fundamental beliefs that guide or motivate
attitudes or actions.
◉ Values in Accounting:.
Answer: independence, integrity, objectivity, professional
skepticism, and due care.
◉ The Golden Rule in Business.
, Answer: wrong to think that separate standards of behavior exist to
guide our personal lives but that a different (lower) standard exists
in business.
◉ Laws.
Answer: a collection of rules and regulations that come with
penalties and punishments if not followed.
◉ Ethical Legalism.
Answer: if an intended action is legal, it is, therefore ethical.
◉ Useful Questions to Asked by an Ethical Individual.
Answer: What does the law require of me?
What do ethical standards of behavior demand of me?
How should I act to conform to both?
◉ Moral Point of View.
Answer: requires that a decision maker be willing, at least
sometimes, to take an action that may not be in his/her best interest.
◉ Moral Relativism.
MAKING IN ACCOUNTING TEXT AND CASES
PRACTICE TEST 2026 FULL SOLUTIONS
REVIEW PACK
◉ Ethics.
Answer: the principles of right and wrong that guide an individual in
making decisions
◉ Morals.
Answer: a person's standards of behavior or beliefs concerning what
is and is not acceptable for them to do.
◉ Values.
Answer: basic and fundamental beliefs that guide or motivate
attitudes or actions.
◉ Values in Accounting:.
Answer: independence, integrity, objectivity, professional
skepticism, and due care.
◉ The Golden Rule in Business.
, Answer: wrong to think that separate standards of behavior exist to
guide our personal lives but that a different (lower) standard exists
in business.
◉ Laws.
Answer: a collection of rules and regulations that come with
penalties and punishments if not followed.
◉ Ethical Legalism.
Answer: if an intended action is legal, it is, therefore ethical.
◉ Useful Questions to Asked by an Ethical Individual.
Answer: What does the law require of me?
What do ethical standards of behavior demand of me?
How should I act to conform to both?
◉ Moral Point of View.
Answer: requires that a decision maker be willing, at least
sometimes, to take an action that may not be in his/her best interest.
◉ Moral Relativism.
