A client asks his accountant to ignore a mistake which overstated the accounts receivable account. The accountant decides that the accounts receivable account has to be corrected to state the correct amount based on the current accounting rules. Which stage of Kohlberg' Stages of Moral Development is the accounting reasoning?
A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 5

Question

Quizplus · Accepted Answer

The accountant's decision to correct the accounts receivable to reflect the accurate amount, despite the client's request to ignore the mistake, aligns with Stage 4 of Kohlberg's Stages of Moral Development. This stage is characterized by a respect for authority, fixed rules, and the maintenance of social order. The accountant is adhering to established accounting rules and ethical standards, prioritizing these principles over personal relationships or individual gain.

A Client Asks His Accountant to Ignore a Mistake Which