Question 1

Treating other fairly encompasses treating them:
A)Equally,impartially,and responsibly
B)Equally,responsibly,and openly
C)Impartially,openly,and diligently
D)Equally,impartially,and openly

Accepted Answer

To treat others fairly, one must treat them equally, without any bias or favoritism. It is also important to treat others openly, with honesty and transparency, so that they are aware of the reasoning behind decisions or actions taken. Finally, treating others impartially means not allowing personal emotions or prejudices to impact how one treats them. Therefore, the best choice is D) Equally, impartially, and openly.

Question 2

Which of the following situations would be considered ethical?
A)The cashier at Wal-Mart gives you $5 more than you were supposed to receive and you don't do anything about it
B)You accidentally back into a car at Wal-Mart and leave your information for them to call
C)Receiving fake $20 bills and using them in a store while knowing they are fake
D)Finding a phone in a restaurant and keeping it

Accepted Answer

Leaving your information after accidentally damaging someone's property is the ethical thing to do as it shows accountability and responsibility for your actions. Keeping lost property (D) or using counterfeit money (C) is dishonest and unethical. Accepting extra money and not informing the cashier (A) is also dishonest and could be considered stealing.

Question 3

Which of the following elements does NOT make up an integral part of what is meant by "ethics"?
A)Accepted standards of behavior
B)Knowing the difference between right and wrong
C)Always following the law
D)The moral point of view

Accepted Answer

While following the law is certainly an important aspect of ethical behavior, it is not the only element. Ethical behavior also involves an individual's personal values and beliefs, as well as their sense of duty to others and to society as a whole. Thus, while ethics and the law can certainly overlap, they are not synonymous.

Question 4

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:
A)The importance of integrity in decision making
B)The importance of loyalty to one's superior
C)The importance of whistleblowing when financial wrongdoing exists
D)The importance of maintaining confidentiality

Accepted Answer

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes the importance of integrity in decision making. It states that a CPA should exercise sensitive professional and moral judgments in all activities. This includes a sense of responsibility to the public, clients, and colleagues.

Question 5

If one's reputation is tainted it may create a:
A)Conflict of interests
B)Loss of independence
C)Lack of trust
D)Loss of objectivity

Accepted Answer

When one's reputation is tainted, it leads to a lack of trust. People may question their intentions and actions, creating a negative perception of their character. This can lead to damaged relationships, loss of business opportunities, and overall challenges in maintaining a positive reputation. A lack of trust can also make it difficult for others to give fair and unbiased opinions, leading to a loss of objectivity in decision-making. However, it does not necessarily create a conflict of interests or loss of independence.

Question 6

Which of the following is NOT a pillar of character according to the Josephson Institute?
A)Caring
B)Citizenship
C)Respect
D)Judgmental

Accepted Answer

Judgmental is not a pillar of character according to the Josephson Institute. The actual six pillars of character are trustworthiness, respect, responsibility, fairness, caring, and citizenship.

Question 7

Responsibility goes hand in hand with:
A)Respect
B)Loyalty
C)Courage
D)Accountability

Accepted Answer

Responsibility involves being accountable for one's actions and decisions. Therefore, option D (Accountability) is the best choice. While options A (Respect), B (Loyalty), and C (Courage) are all important values, they do not directly correspond with responsibility.

Question 8

Objectivity requires that a CPA should:
A)Maintain a mental attitude of intellectual honesty and independence
B)Maintain a mental attitude of intellectual honesty and impartiality
C)Act in accordance with the best interests of one's client
D)Act in accordance with the best interests of one's employer

Accepted Answer

Objectivity requires a CPA to maintain a mental attitude of intellectual honesty and impartiality, meaning that they should not let bias, conflicts of interest, or undue influence interfere with their professional judgment. Acting in accordance with the best interests of a client or employer could compromise objectivity.

Question 9

An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:
A)The due care principle
B)Confidentiality
C)One's reliability obligation
D)Public interest obligation

Accepted Answer

Whistleblowing on financial wrongdoing by going outside the entity typically violates the confidentiality principle, as accountants are expected to keep information confidential unless there is a legal or professional obligation to disclose it.

Question 10

The ancient Greeks thought of the virtues as characteristics of behavior that:
A)Could lead to a good life
B)Make up the "six pillars of character"
C)Support the rights theory
D)Rationalize unethical actions

Accepted Answer

The ancient Greeks believed that practicing virtues such as courage, wisdom, justice, and moderation could lead to a good and fulfilling life, both individually and within society. They emphasized the importance of ethical behavior and the cultivation of these virtues in individuals.

Question 11

Ethical relativism can best be described as a:
A)Point of view that morality is relative to the norms of one's culture.
B)Concept that holds that integrity should be maintained in the face of pressure by others.
C)An ethical reasoning method that holds one should always act out of self-interest.
D)An ethical reasoning method that holds one should always consider the effect of one's actions on others.

Accepted Answer

Ethical relativism is the point of view that morality is relative to the norms of one's culture. It holds that there are no universal moral standards that can be applied to all individuals regardless of their culture or society. Morality is viewed as subjective, meaning that what is considered right or wrong depends on the culture, time, and place in which a person lives. Therefore, ethical relativism suggests that one's actions should be judged based on the standards of their culture, rather than a universal moral code.

Question 12

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?
A)Egoism
B)Justice
C)Virtue ethics
D)Utilitarianism

Accepted Answer

Jane is using egoism to make her decision as she is prioritizing her own advancement in the firm over the ethical obligation to report the material misstatement.

Question 13

Social networking is the norm for many workers,and some workers spend at least 30 percent of their workday linked up to one or more networks.The Ethics Resource Center conducted a survey in which social networkers admitted each of the following except:
A)They think about risks before posting online.
B)They comment on their personal sites about their company if it was in the news.
C)They often comment on their personal sites about managers,coworkers,and even clients.
D)They always consider the consequences of their postings on others.

Accepted Answer

The option that social networkers admitted to always considering the consequences of their postings on others is not supported by the survey findings. This suggests that while they may engage in various online behaviors, consistently considering the impact of their actions on others is not one of them.

Question 14

Which of the following characteristics does NOT describe the importance of integrity in decision making?
A)Acting out of moral principle
B)Being loyal to one's superior
C)Having the courage to do the right thing
D)Not subordinating professional judgment to others

Accepted Answer

Being loyal to one's superior is not a characteristic that highlights the importance of integrity in decision making. In fact, blindly following superiors without considering ethical or moral implications could lead to compromising one's integrity. A person with integrity should prioritize ethical principles and the greater good over loyalty to any individual or authority.

Question 15

What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
A)Truthfulness
B)Integrity
C)Loyalty
D)Due care

Accepted Answer

Both Aristotle's virtues and the ethical standards for CPAs emphasize integrity as a core principle. Aristotle's ethical philosophy promotes virtues that lead to good character, among which integrity is key. Similarly, the ethical standards for CPAs, which guide their professional conduct, highlight integrity as essential in ensuring trust and fairness in their practices.

Question 16

Respect is an important character of behavior because:
A)It entails a loyalty obligation to one's superior
B)It enables one to perform professional services competently
C)It is critical to maintaining one's integrity
D)It encompasses attributes of how we should treat others

Accepted Answer

Respect encompasses attributes of how we should treat others, which includes treating others with dignity and consideration. This is important for building positive relationships and creating a harmonious environment, both in personal and professional settings. It also fosters a sense of empathy and understanding towards others, which is crucial in cultivating a positive workplace culture. While loyalty, competency, and integrity are all important traits, they are not the direct result of respect.

Question 17

Which of the following is NOT an element of trustworthiness according to the Six Pillars of Character?
A)Reliability
B)Loyalty
C)Fairness
D)Honesty

Accepted Answer

Fairness is one of the Six Pillars of Character, but it is not specifically categorized under trustworthiness. The elements that directly relate to trustworthiness include reliability, loyalty, and honesty.

Question 18

Which of the following characteristics is NOT part of behaving with empathy?
A)Being loyal to one's friends
B)Being understanding of one's friends
C)Being sensitive to the feelings of one's friends
D)Being caring about one's friends

Accepted Answer

Loyalty to one's friends is not necessarily a part of behaving with empathy. Empathy involves understanding, sensitivity, and caring towards others' emotions and experiences, but loyalty involves a sense of commitment and dedication towards a particular group or individual. While loyalty may sometimes align with empathy, it is not always a necessary aspect of it.

Question 19

Which of following is false of active social networkers?
A)They are less likely to blow the whistle than coworkers.
B)They witness more misconduct among their coworkers.
C)They experience more retaliation when they report their colleagues.
D)They act with integrity with effective training on the use of social networks.

Accepted Answer

The statement "They are less likely to blow the whistle than coworkers" is false. Active social networkers are more likely to report misconduct and blow the whistle compared to coworkers who are less active on social networks.

Question 20

Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in the WorldCom fraud?
A)Persistence
B)Competence
C)Integrity
D)Conformity

Accepted Answer

Cynthia Cooper's behavior in uncovering the WorldCom fraud was characterized by persistence, competence, and integrity. She did not conform to the fraudulent actions of her superiors and instead chose to investigate and expose the fraud. Therefore, choice D, conformity, does not describe her behavior.

Quiz 1: Ethical Reasoning: Implications for Accounting

Treating other fairly encompasses treating them:

Which of the following situations would be considered ethical?

Which of the following elements does NOT make up an integral part of what is meant by "ethics"?

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

If one's reputation is tainted it may create a:

Which of the following is NOT a pillar of character according to the Josephson Institute?

Responsibility goes hand in hand with:

Objectivity requires that a CPA should:

An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:

The ancient Greeks thought of the virtues as characteristics of behavior that:

Ethical relativism can best be described as a:

Social networking is the norm for many workers,and some workers spend at least 30 percent of their workday linked up to one or more networks.The Ethics Resource Center conducted a survey in which social networkers admitted each of the following except:

Which of the following characteristics does NOT describe the importance of integrity in decision making?

What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?

Respect is an important character of behavior because:

Which of the following is NOT an element of trustworthiness according to the Six Pillars of Character?

Which of the following characteristics is NOT part of behaving with empathy?

Which of following is false of active social networkers?

Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in the WorldCom fraud?