Chapter 1 Ethical Reasoning Implications for Accounting Part 3

51) Greatest good for the greatest number of people is the theory of ________. A) Rights B) Deontology C) Utilitarianism D) Justice Answer: C 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 52) The motive of "duty" is most associated with ________. A) Egoism B) Deontology C) Utilitarianism D) Justice Answer: B 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 53) Virtue ethics is: A) Doing what is right B) One's duty to act in a socially acceptable manner C) One's ability to meet or exceed their potential D) What one ought to do when presented with an ethical dilemma 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 21 54) Bob is being pressured by his superior to go along with improper accounting and told he is expected to be a team player. Which of the following statements best characterizes those expectations? A) Independence B) Confidentiality C) Loyalty D) Utilitarianism Answer: C 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 55) When making a donation at the local Goodwill, Martha tells the clerk that her old computer is in perfect working order when she knows it is not, just so she can deduct more on her taxes. Which theory best describes Martha's behavior? A) Utilitarianism B) Deontology C) Egoism D) Justice Answer: C 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 22 56) Decisions that are made based on the underlying circumstances of a particular matter can be best characterized by: A) Ethical Collectivism B) Situational ethics C) Ethical relativism D) Judgmental Individualism Answer: B 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 57) Decisions that are made based on the underlying cultural factors can be best characterized by: A) Ethical Collectivism B) Situational ethics C) Ethical relativism D) Judgmental Individualism Answer: C 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 58) When applying Utilitarianism to judge actions, what is the only thing that matters? A) Motives B) Fairness C) Consequences D) Rights Answer: C 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 23 59) Assume you are taking an exam and you clearly see that your friend is cheating. Your professor does not notice it. What is the most appropriate action for you to take if you are an ethical person? A) You pretend not to notice it. B) You discuss the matter with your friend after the exam. C) You also cheat the exam because your friend does. D) Send a text message to your friend and tell them to stop cheating. Answer: B 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 60) Your manager asks you to "cook the books" to support a loan application at the local bank. The manager insists it is a one-time request. What should you do? A) Go along with the manager's request B) Talk to others in the company to determine how they handled such situations C) Refuse to go along with the request D) Inform the audit committee Answer: C 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 24 61) A difficult choice between two moral principles that are in conflict with one another is known as a/an: A) ethical relativism B) situational ethics C) ethical dilemma D) conflict ethics 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 62) The relationship between legal and ethical can best be expressed as: A) Always follow the law regardless of consequences for others B) Ethical behavior requires less than legal behavior C) Legal and ethical are the same thing D) Ethical behavior requires us to do more than required by the law and less than the law allows Answer: D 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 63) When an employee is given a job evaluation, he has a right to expect: A) Fair evaluations B) Caring and empathy on the part of the evaluator C) 360 degree evaluations from everyone in the firm D) Evaluations of technical, not personal skills Answer: A 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 25 64) A danger of situational ethics is that it can be used to rationalize a wrong-doing. Such rationalizations may be seen in all of the following examples except: A) Cheating at the University of North Carolina B) Hiding Anne Frank's family to escape Nazi terror. C) Betty Vinson's actions at World Com D) David Walker's actions at the Government Accountability Office Answer: D Difficulty: 3 Hard Topic: What Is Ethics? Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal obligations. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 65) Hofstede's Cultural Dimensions helps explain how workers from different cultures might react in the workplace. The Long-Term Orientation dimension could help explain the different approaches toward: A) Dealing with uncertainty B) Dealing with differences in power structure C) Emphasizing short-term and long-term results D) Emphasizing results over process 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 66) Civility requires all but the following: A) Restraint B) Politeness C) Respect D) Disregard 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 26 67) Which of the following is true of the relationship between civility and ethics? A) One can be both ethical and uncivil. B) One can be both civil and unethical. C) One can use others, be a bully and be ethical. D) One can have empathy and caring for others and be uncivil towards them. Answer: B 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 68) Which of the following is NOT a likely rationalization a student might use to justify cheating on an exam? A) Ethical relativism B) Situational ethics C) Cultural conditioning D) Fair treatment Answer: D 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 69) The cultural value of Individualism reflects: A) The degree a society reinforces individual or collective achievement B) Tolerance for uncertainty and ambiguity in society C) The degree of equality between people in a society D) Whether a society has a long-term or short-term orientation Answer: A 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 27 70) The basic and fundamental beliefs that guide or motivate attitudes or actions are called: A) Relativism B) Egoism C) Morals D) Values Answer: D 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 71) In the Harvard Cheating scandal case, using ethical reasoning who is at fault for the situation? A) The professor B) Teaching assistants C) Students who cheated D) All of the above Answer: D 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 72) In the Giles and Regas case, the primary ethical issue can be stated as: A) Whether a subordinate should blow the whistle on a superior who has violated ethical policy B) Whether two staff members of the same rank should be allowed to date C) Whether a superior should become involved in a dating relationship with a subordinate D) Whether a student should renege on the acceptance of an offer from one firm after receiving an offer from a second firm 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 28 73) In the Moral Turpitude case, the primary ethical issue in the case is: A) Falsification of financial statements B) Violation of the acts discreditable C) The lack of independence of the audit team D) An inappropriate relationship between a supervisor and subordinate 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: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 74) In the Lone Star School District case, the auditors were mostly concerned about: A) The behavior of a staff member toward client personnel B) The falsification of the financial statements C) The lack of independence of the audit team D) The lack of documentation for travel and entertainment expenses Answer: D Difficulty: 1 Easy Topic: What Is Ethics? Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal obligations. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 75) The main issue in the Unintended Consequences case is: A) Should the student who accepted an offer from one CPA firm back off from that promise in order to accept the offer of another firm deemed more preferable to the student B) Should Regas back off from the dating relationship she developed with Giles C) Should the CPA firm renege on its offer of employment to a student after realizing it made one offer too many to student candidates for staff positions D) Should Tybell quit the firm because of conflicts with his superiors Answer: A Difficulty: 1 Easy Topic: The Six Pillars of Character Learning Objective: 01-03 Describe how the pillars of character support ethical decision making. Bloom's: Analyze AACSB: Ethics Accessibility: Keyboard Navigation 29