WGU D550 Ethics for Accountants OA Practice
Test Questions and Correct Answers/ D550
Latest Practice Exam for WGU D550 Objective
Assessment and Pre-Assessment Prep
Who wrote "The 7 signs of Ethical Collapse"?
A) Arthur Levitt
B) Marianne Jennings
C) Warren Buffett
D) Michael Davis
-ANSWER- B
What are the 7 signs of ethical collapse?
A) Profit, growth, market share, efficiency, productivity, innovation, customer
satisfaction
B) Pressure to maintain numbers, fear and silence, young'uns and a bigger than life
CEO, weak board of directors, conflicts of interest, innovation like no other
company, goodness in some areas atones for evil in others
C) Strong leadership, high profits, low turnover, customer loyalty, brand
recognition, market dominance, innovation
D) Cash flow, revenue growth, profit margins, return on equity, asset turnover,
debt ratio, liquidity
-ANSWER- B
Who stated that "integrity has no need of rules"?
A) Aristotle
B) Albert Camus
C) Immanuel Kant
D) John Stuart Mill
-ANSWER- B
Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO,
wants to accelerate the recording of revenue to an earlier period to "make the
numbers," but Wanda is convinced this would violate GAAP. If Wanda reasons at
1
,stage 4 of Kohlberg's model, she is most likely to:
A) Comply with the CFO to keep her job
B) Refuse to record the transaction as desired by the CFO because it violates rules
and laws
C) Consider what her peers would do
D) Act based on personal self-interest
-ANSWER- B
Which bias involves a tendency to believe past outcomes were expected or known
before they occurred?
A) Confirmation bias
B) Overconfidence bias
C) Hindsight bias
D) Anchoring bias
-ANSWER- C
Which bias involves a belief that theories about the world also suggest that we tend
to blame individuals for events, rather than their work environment, policies and
procedures, or incentive programs?
A) Hindsight bias
B) Attribution bias
C) Confirmation bias
D) Overconfidence bias
-ANSWER- B
Assume your values conflict with what you are being asked to do. Under the
Giving Voice to Values methodology, which of the following statements reflects
the thought process you might have in developing a game plan to voice your
values?
A) Consider only the financial consequences
B) Reflect on the objections that might be raised to your intended expressed views
C) Immediately report to external authorities
D) Remain silent to protect your career
-ANSWER- B
Fraud can be defined as:
A) A mistake in financial reporting
B) A deliberate misrepresentation to gain an advantage over another party
C) An error in judgment
2
,D) A disagreement over accounting principles
-ANSWER- B
The difference between occupational and financial statement fraud is:
A) Financial statement fraud is always immaterial
B) Occupational fraud is generally committed by employees
C) Occupational fraud only involves theft of cash
D) Financial statement fraud is always unintentional
-ANSWER- B
The seven signs of a pending ethical collapse include all but:
A) Pressure to maintain numbers
B) Fear and silence
C) Strong board of directors
D) Weak board of directors
-ANSWER- C
A troubling result of the 2021 Global Business Ethics Survey is:
A) Fewer employees observed misconduct
B) There is a significant increase in retaliation
C) All companies have perfect ethics
D) No employees report misconduct
-ANSWER- B
The relationship between the shareholders, directors, and management of a
company, as defined by the corporate charter, bylaws, formal policy, and rule of
law is known as:
A) Corporate social responsibility
B) Corporate governance
C) Internal control
D) Risk management
-ANSWER- B
The level of care expected of a reasonable person under similar circumstances in
meeting one's fiduciary duty is called:
A) Duty of loyalty
B) Duty of care
C) Duty of obedience
D) Duty of confidentiality
-ANSWER- B
3
, The Clawback rule allows:
A) Recovering compensation from CEOs who engage in financial statement
misconduct
B) Employees to take back vacation time
C) Shareholders to sue the board
D) Auditors to withdraw their opinion
-ANSWER- A
What is the main fiduciary duty of the board of directors?
A) Maximize executive compensation
B) Safeguard the interests of the corporation and its shareholders
C) Minimize tax liability
D) Ensure employee satisfaction above all else
-ANSWER- B
In the Pinto case, Ford relied on which approaches to ethical reasoning to decide
on a course of action with respect to the faulty gas tank placement?
A) Virtue ethics and deontology
B) Ethical legalism and utilitarianism
C) Relativism and egoism
D) Care ethics and justice
-ANSWER- B
The framework of COSO's Enterprise Risk Management can best be characterized
as:
A) A simple checklist for compliance
B) Incorporate enhanced corporate governance into internal control principles
C) A financial reporting standard
D) A tax planning framework
-ANSWER- B
The KPMG Professional Judgment Framework defines judgment as:
A) The final decision of an audit
B) The process of reaching a decision or drawing a conclusion where there are a
number of possible alternative solutions
C) The application of GAAP
D) The review of working papers
-ANSWER- B
4
Test Questions and Correct Answers/ D550
Latest Practice Exam for WGU D550 Objective
Assessment and Pre-Assessment Prep
Who wrote "The 7 signs of Ethical Collapse"?
A) Arthur Levitt
B) Marianne Jennings
C) Warren Buffett
D) Michael Davis
-ANSWER- B
What are the 7 signs of ethical collapse?
A) Profit, growth, market share, efficiency, productivity, innovation, customer
satisfaction
B) Pressure to maintain numbers, fear and silence, young'uns and a bigger than life
CEO, weak board of directors, conflicts of interest, innovation like no other
company, goodness in some areas atones for evil in others
C) Strong leadership, high profits, low turnover, customer loyalty, brand
recognition, market dominance, innovation
D) Cash flow, revenue growth, profit margins, return on equity, asset turnover,
debt ratio, liquidity
-ANSWER- B
Who stated that "integrity has no need of rules"?
A) Aristotle
B) Albert Camus
C) Immanuel Kant
D) John Stuart Mill
-ANSWER- B
Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO,
wants to accelerate the recording of revenue to an earlier period to "make the
numbers," but Wanda is convinced this would violate GAAP. If Wanda reasons at
1
,stage 4 of Kohlberg's model, she is most likely to:
A) Comply with the CFO to keep her job
B) Refuse to record the transaction as desired by the CFO because it violates rules
and laws
C) Consider what her peers would do
D) Act based on personal self-interest
-ANSWER- B
Which bias involves a tendency to believe past outcomes were expected or known
before they occurred?
A) Confirmation bias
B) Overconfidence bias
C) Hindsight bias
D) Anchoring bias
-ANSWER- C
Which bias involves a belief that theories about the world also suggest that we tend
to blame individuals for events, rather than their work environment, policies and
procedures, or incentive programs?
A) Hindsight bias
B) Attribution bias
C) Confirmation bias
D) Overconfidence bias
-ANSWER- B
Assume your values conflict with what you are being asked to do. Under the
Giving Voice to Values methodology, which of the following statements reflects
the thought process you might have in developing a game plan to voice your
values?
A) Consider only the financial consequences
B) Reflect on the objections that might be raised to your intended expressed views
C) Immediately report to external authorities
D) Remain silent to protect your career
-ANSWER- B
Fraud can be defined as:
A) A mistake in financial reporting
B) A deliberate misrepresentation to gain an advantage over another party
C) An error in judgment
2
,D) A disagreement over accounting principles
-ANSWER- B
The difference between occupational and financial statement fraud is:
A) Financial statement fraud is always immaterial
B) Occupational fraud is generally committed by employees
C) Occupational fraud only involves theft of cash
D) Financial statement fraud is always unintentional
-ANSWER- B
The seven signs of a pending ethical collapse include all but:
A) Pressure to maintain numbers
B) Fear and silence
C) Strong board of directors
D) Weak board of directors
-ANSWER- C
A troubling result of the 2021 Global Business Ethics Survey is:
A) Fewer employees observed misconduct
B) There is a significant increase in retaliation
C) All companies have perfect ethics
D) No employees report misconduct
-ANSWER- B
The relationship between the shareholders, directors, and management of a
company, as defined by the corporate charter, bylaws, formal policy, and rule of
law is known as:
A) Corporate social responsibility
B) Corporate governance
C) Internal control
D) Risk management
-ANSWER- B
The level of care expected of a reasonable person under similar circumstances in
meeting one's fiduciary duty is called:
A) Duty of loyalty
B) Duty of care
C) Duty of obedience
D) Duty of confidentiality
-ANSWER- B
3
, The Clawback rule allows:
A) Recovering compensation from CEOs who engage in financial statement
misconduct
B) Employees to take back vacation time
C) Shareholders to sue the board
D) Auditors to withdraw their opinion
-ANSWER- A
What is the main fiduciary duty of the board of directors?
A) Maximize executive compensation
B) Safeguard the interests of the corporation and its shareholders
C) Minimize tax liability
D) Ensure employee satisfaction above all else
-ANSWER- B
In the Pinto case, Ford relied on which approaches to ethical reasoning to decide
on a course of action with respect to the faulty gas tank placement?
A) Virtue ethics and deontology
B) Ethical legalism and utilitarianism
C) Relativism and egoism
D) Care ethics and justice
-ANSWER- B
The framework of COSO's Enterprise Risk Management can best be characterized
as:
A) A simple checklist for compliance
B) Incorporate enhanced corporate governance into internal control principles
C) A financial reporting standard
D) A tax planning framework
-ANSWER- B
The KPMG Professional Judgment Framework defines judgment as:
A) The final decision of an audit
B) The process of reaching a decision or drawing a conclusion where there are a
number of possible alternative solutions
C) The application of GAAP
D) The review of working papers
-ANSWER- B
4
