1
,Test Bank Ethical Obligations and Decision-
l8 l8 l8 l8 l8
Making in Accounting: Text and Cases, 6th Edition by Steven Mint l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
and William Miller l8 l8
Chapter 01 6e Mintz l8 l8 l8
Answers Included l8
MULTIPLE CHOICE - l8 l8
Choose the one alternative that best completes the statement or answers the question.
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1) What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
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A) truthfulness
B) integrity
C) loyalty
D) due care l8
2) Jane finds a material misstatement while auditing a client's accounts receivables. Her se
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nior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be v
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iewed as a team player in order to advance in the firm, so Jane follows her senior's instructions
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and ignores the misstatement. Which ethical theory did Jane use to make her decision?
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A) egoism
B) justice
C) virtue ethics l8
D) utilitarianism
3) Which of the following situations would be considered ethical?
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A) The cashier at Wal- l8 l8 l8
Mart gives you $5 more than you were supposed to receive and you don't do anything about it
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.
B) You accidentally back into a car at Wal-Mart and leave your information for them to
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call.
C) You receive fake $20 bills and use them in a store while knowing they are fake.
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D) You find a phone in a restaurant and keep it. l8 l8 l8 l8 l8 l8 l8 l8 l8
4) Which of the following characteristics does not describe the importance of integrity in
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decision making?
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2
, A) Acting out of moral principle
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B) Being loyal to one's superior
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C) Having the courage to do the right thing
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D) Not subordinating professional judgment to others
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5) Which of the following characteristics does not describe the behavior of Cynthia Cooper
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in the WorldCom fraud?
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A) persistence
B) competence
C) integrity
D) conformity
6) The ancient Greeks thought of the virtues as characteristics of behavior that
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A) could lead to a good life.
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B) make up the "six pillars of character".
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C) support the rights theory.l8 l8 l8
D) rationalize unethical actions. l8 l8
7) Which of the following elements does not make up an integral part of what is meant by
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"ethics"?
A) accepted standards of behavior l8 l8 l8
B) knowing the difference between right and wrong
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C) always following the law l8 l8 l8
D) the moral point of view
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8) Ethical relativism can best be described as
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3
, A) a point of view that morality is relative to the norms of one's culture.
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B) a concept that holds that integrity should be maintained in the face of pressure by
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others.
C) an ethical reasoning method that holds one should always act out of self-interest.
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D) an ethical reasoning method that holds one should always consider the effect of one's
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actions on others.
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9) Which of the following is not a pillar of character according to the Josephson Institute?
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A) caring
B) citizenship
C) respect
D) judgmental
10) Which of the following is not an element of trustworthiness according to the Six Pillars
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of Character?
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A) reliability
B) loyalty
C) fairness
D) honesty
11) An accountant who blows the whistle on financial wrongdoing by his/her employer by
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going outside the entity violates
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A) the due care principle.
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B) confidentiality.
C) one's reliability obligation.
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D) public interest obligation. l8 l8
12) Cancel culture results in each of the following except:
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4
,Test Bank Ethical Obligations and Decision-
l8 l8 l8 l8 l8
Making in Accounting: Text and Cases, 6th Edition by Steven Mint l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
and William Miller l8 l8
Chapter 01 6e Mintz l8 l8 l8
Answers Included l8
MULTIPLE CHOICE - l8 l8
Choose the one alternative that best completes the statement or answers the question.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
1) What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
A) truthfulness
B) integrity
C) loyalty
D) due care l8
2) Jane finds a material misstatement while auditing a client's accounts receivables. Her se
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
nior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be v
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
iewed as a team player in order to advance in the firm, so Jane follows her senior's instructions
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
and ignores the misstatement. Which ethical theory did Jane use to make her decision?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
A) egoism
B) justice
C) virtue ethics l8
D) utilitarianism
3) Which of the following situations would be considered ethical?
l8 l8 l8 l8 l8 l8 l8 l8
A) The cashier at Wal- l8 l8 l8
Mart gives you $5 more than you were supposed to receive and you don't do anything about it
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
.
B) You accidentally back into a car at Wal-Mart and leave your information for them to
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
call.
C) You receive fake $20 bills and use them in a store while knowing they are fake.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
D) You find a phone in a restaurant and keep it. l8 l8 l8 l8 l8 l8 l8 l8 l8
4) Which of the following characteristics does not describe the importance of integrity in
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l
decision making?
8 l8
2
, A) Acting out of moral principle
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B) Being loyal to one's superior
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C) Having the courage to do the right thing
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D) Not subordinating professional judgment to others
l8 l8 l8 l8 l8
5) Which of the following characteristics does not describe the behavior of Cynthia Cooper
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l
in the WorldCom fraud?
8 l8 l8 l8
A) persistence
B) competence
C) integrity
D) conformity
6) The ancient Greeks thought of the virtues as characteristics of behavior that
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
A) could lead to a good life.
l8 l8 l8 l8 l8
B) make up the "six pillars of character".
l8 l8 l8 l8 l8 l8
C) support the rights theory.l8 l8 l8
D) rationalize unethical actions. l8 l8
7) Which of the following elements does not make up an integral part of what is meant by
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
"ethics"?
A) accepted standards of behavior l8 l8 l8
B) knowing the difference between right and wrong
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C) always following the law l8 l8 l8
D) the moral point of view
l8 l8 l8 l8
8) Ethical relativism can best be described as
l8 l8 l8 l8 l8 l8
3
, A) a point of view that morality is relative to the norms of one's culture.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
B) a concept that holds that integrity should be maintained in the face of pressure by
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
others.
C) an ethical reasoning method that holds one should always act out of self-interest.
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
D) an ethical reasoning method that holds one should always consider the effect of one's
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
actions on others.
l8 l8
9) Which of the following is not a pillar of character according to the Josephson Institute?
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
A) caring
B) citizenship
C) respect
D) judgmental
10) Which of the following is not an element of trustworthiness according to the Six Pillars
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8
of Character?
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A) reliability
B) loyalty
C) fairness
D) honesty
11) An accountant who blows the whistle on financial wrongdoing by his/her employer by
l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l
going outside the entity violates
8 l8 l8 l8 l8
A) the due care principle.
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B) confidentiality.
C) one's reliability obligation.
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D) public interest obligation. l8 l8
12) Cancel culture results in each of the following except:
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4
