Ethical Obligations and Decision-Making in Accounting 5th Edition Mintz Test Bank
Ethical Obligations and Decision-Making, 5e (Mintz)
Chapter 1 Ethical Reasoning: Implications for Accounting
1) What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
- Truthfulness
- Integrity
- Loyalty
- Due care
Answer: B
Difficulty: 1 Easy
Topic: Integrity: The Basis of Accounting Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
2) Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm so Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?
- Egoism
- Justice
- Virtue ethics
- Utilitarianism
Answer: A
Difficulty: 2 Medium
Topic: Modern Moral Philosophies
Learning Objective: 01-04 Differentiate between moral philosophies and their effect on ethical reasoning in accounting.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation 1 / 4
3) Which of the following situations would be considered ethical?
- The cashier at Wal-Mart gives you $5 more than you were supposed to receive and you don't
- You accidentally back into a car at Wal-Mart and leave your information for them to call
- Receiving fake $20 bills and using them in a store while knowing they are fake
- Finding a phone in a restaurant and keeping it
do anything about it
Answer: B
Difficulty: 2 Medium
Topic: What Is Ethics?
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal obligations.
Bloom's: Evaluate
AACSB: Ethics
Accessibility: Keyboard Navigation
4) Which of the following characteristics does NOT describe the importance of integrity in decision making?
- Acting out of moral principle
- Being loyal to one's superior
- Having the courage to do the right thing
- Not subordinating professional judgment to others
Answer: B
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation 2 / 4
AACSB: Ethics
Accessibility: Keyboard Navigation
3
5) Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in the WorldCom fraud?
- Persistence
- Competence
- Integrity
- Conformity
Answer: D
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting; AICPA Code of Conduct Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and avoid subordination of judgment.; 01-06 Discuss the Principles section of the AICPA Code of Professional Conduct.
Bloom's: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
6) The ancient Greeks thought of the virtues as characteristics of behavior that:
- Could lead to a good life
- Make up the "six pillars of character"
- Support the rights theory
- Rationalize unethical actions
Answer: A
Difficulty: 2 Medium
Topic: Modern Moral Philosophies
Learning Objective: 01-04 Differentiate between moral philosophies and their effect on ethical reasoning in accounting.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
7) Which of the following elements does NOT make up an integral part of what is meant by "ethics"?
- Accepted standards of behavior
- Knowing the difference between right and wrong
- Always following the law
- The moral point of view
Answer: C
Difficulty: 1 Easy
Topic: Integrity: The Basis of Accounting Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and avoid subordination of judgment.
Bloom's: Apply 3 / 4
AACSB: Ethics
Accessibility: Keyboard Navigation
4
8) Ethical relativism can best be described as a:
- Point of view that morality is relative to the norms of one's culture.
- Concept that holds that integrity should be maintained in the face of pressure by others.
- An ethical reasoning method that holds one should always act out of self-interest.
- An ethical reasoning method that holds one should always consider the effect of one's actions
on others.
Answer: A
Difficulty: 2 Medium
Topic: The Six Pillars of Character
Learning Objective: 01-03 Describe how the pillars of character support ethical decision making.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
9) Which of the following is NOT a pillar of character according to the Josephson Institute?
- Caring
- Citizenship
- Respect
- Judgmental
Answer: D
Difficulty: 2 Medium
Topic: The Six Pillars of Character
Learning Objective: 01-03 Describe how the pillars of character support ethical decision making.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
10) Which of the following is NOT an element of trustworthiness according to the Six Pillars of Character?
- Reliability
- Loyalty
- Fairness
- Honesty
Answer: C
Difficulty: 2 Medium
Topic: What Is Ethics?
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal obligations.
Bloom's: Understand
- / 4