Question 1

In the Capitalization versus Expensing case the main ethical issue is whether Gloria Hernandez should:

Accepted Answer

The main ethical issue in this case is whether to capitalize or expense $1 million of expenditures. Gloria Hernandez should carefully consider the principles of accounting and make a decision that is in compliance with the accounting standards and principles. She should not be influenced by her supervisor's pressure or any personal interests. Therefore, choosing either option B, C, or D is not appropriate in this situation.

Question 2

In the Shifty Industries case, the primary ethical issue can be stated as:

Accepted Answer

The primary ethical issue in the Shifty Industries case is about claiming a higher section 179 deduction than allowed by law, which involves misrepresenting financial information and violating tax regulations.

Question 3

When an employee is given a job evaluation, he has a right to expect:

Accepted Answer

An employee has the right to expect fair evaluations that are based on their job performance and not influenced by personal biases or opinions. It is important for evaluations to be objective and accurate to ensure that employees are rewarded and recognized for their hard work and contributions to the organization. While caring and empathy from the evaluator is helpful, it is not a right that an employee can demand. 360 degree evaluations may not be appropriate for all positions or organizations, and technical skills are not the only skills that should be evaluated in a job performance review.

Question 4

The main issue in the Unintended Consequences case is:

Accepted Answer

The main issue in the Unintended Consequences case revolves around whether the student should honor their initial commitment to a CPA firm or accept a more preferable offer from another firm.

Question 5

A difficult choice between two moral principles that are in conflict with one another is known as a/an:

Accepted Answer

An ethical dilemma refers to a situation where there are two moral principles that are in conflict with one another, and where choosing one principle over the other will result in breaching the other principle. This kind of situation requires careful ethical analysis and decision-making, considering the ethical implications of each option and choosing the option that maximizes the ethical values at stake.

Question 6

The cultural value of Individualism reflects:

Accepted Answer

The cultural value of Individualism is defined as the extent to which a society reinforces individual or collective achievement. It emphasizes the importance of personal goals, accomplishments, and self-reliance, rather than collective goals and responsibilities.

Question 7

In the Cleveland Custom Cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because:

Accepted Answer

The owner believed it was acceptable to manipulate financial statement numbers because he was the sole owner and controlled the board of directors, thinking his ownership and control justified his actions.

Question 8

The basic and fundamental beliefs that guide or motivate attitudes or actions are called:

Accepted Answer

Values are the basic and fundamental beliefs that guide or motivate attitudes or actions. Relativism refers to the belief that there are no universal or objective moral standards, while egoism is a focus on self-interest or benefit. Morals refer to a system of principles and values concerning what is right and wrong behavior.

Question 9

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:

Accepted Answer

The Long-Term Orientation dimension explores how different cultures emphasize short-term vs. long-term results. Those with a strong long-term orientation prioritize perseverance and thrift while valuing long-term rewards. Those with a short-term orientation prioritize instant gratification and seek quick results. Therefore, it could explain the differing approaches toward emphasizing short-term and long-term results in the workplace.

Question 10

In the Lone Star School District case, the auditors were mostly concerned about:

Accepted Answer

The auditors were primarily concerned about the lack of documentation for travel and entertainment expenses, which is a common issue in audits as it can indicate potential misuse of funds or non-compliance with policies.

Question 11

Civility requires all but the following:

Accepted Answer

Civility requires restraint, politeness, and respect towards others. Disregard, or ignoring others and their feelings, is not a component of civility.

Question 12

Which of the following is true of the relationship between civility and ethics?

Accepted Answer

Civility refers to good manners and behavior in society, while ethics deals with principles of morality and right conduct. It is possible for someone to exhibit civil behavior while engaging in unethical conduct, such as politely lying or manipulating others for personal gain. Similarly, one can behave in a sharply critical or confrontational manner while adhering to ethical principles, such as when standing up against injustice or exploitation. Therefore, option B is correct.

Question 13

In the Harvard Cheating scandal case, using ethical reasoning who is at fault for the situation?

Accepted Answer

All parties involved are responsible for the situation. The professor and teaching assistants should have created more secure measures to prevent cheating, such as varying exam questions or monitoring more closely during exams. The students who cheated made the decision to violate academic integrity and take advantage of inadequate preventative measures.

Question 14

The relationship between legal and ethical can best be expressed as:

Accepted Answer

Ethical behavior requires us to do more than required by the law and less than the law allows. The law sets a minimum standard of conduct, whereas ethics is concerned with what is right and wrong. Ethical behavior is not always required by law, but it goes beyond legal compliance. Therefore, doing only what is required by law may not be sufficient to ensure ethical behavior.

Question 15

Which of the following is NOT a likely rationalization a student might use to justify cheating on an exam?

Accepted Answer

Ethical relativism, situational ethics, and cultural conditioning are all potential rationalizations for cheating because they suggest that the act may be permissible or justifiable in certain circumstances. However, fair treatment would not be a rationalization for cheating, as cheating violates the principles of fairness and equality.

Question 16

In the Giles and Regas case, the primary ethical issue can be stated as:

Accepted Answer

The primary ethical issue in the Giles and Regas case is whether a superior should become involved in a dating relationship with a subordinate. This raises concerns about power dynamics, favoritism, and potential harm to the subordinate's career. While whistleblowing and reneging on a job offer may be ethical issues in other scenarios, they are not relevant to this specific case. The question of whether two staff members of the same rank can date is also not applicable since in this case, Giles was the superior to Regas.

Question 17

Kevin Lowe's ethical dilemma in the Eating Time case can best be described as whether to:

Accepted Answer

Kevin Lowe's ethical dilemma revolves around the decision to devote extra time to an audit without charging it to the job, which raises questions about honesty in reporting work hours and the ethical implications of such actions in the context of professional standards and expectations.

Question 18

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:

Accepted Answer

The answer of A danger of situational ethics is that...

Question 19

In the Better Boston Beans case, what is the ethical dilemma facing Cyndie?

Accepted Answer

The ethical dilemma facing Cyndie is whether to report her suspicion that her co-worker, Tom, is stealing company information to her manager or to continue trusting Tom and risking the integrity of the workplace. Option B accurately describes the tension between trust and honesty in the workplace. Therefore, the best choice is B.

Question 20

In the Moral Turpitude case, the primary ethical issue in the case is:

Accepted Answer

The violation of acts discreditable is the primary ethical issue in the case, as it involves behavior that undermines the reputation and integrity of the accounting profession. Falsification of financial statements, lack of independence of the audit team, and inappropriate relationships between supervisors and subordinates are also ethical concerns, but they are secondary to the violation of acts discreditable.

Quiz 1: Ethical Reasoning: Implications for Accounting