Question 1

The main issue in the Reneging on a Promise 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

Accepted Answer

The main issue in the Reneging on a Promise case is whether the student should back off from a promise made to one CPA firm in order to accept a more preferable offer from another firm.

Question 2

In the Better Boston Beans case,what is the ethical dilemma facing Cyndie?
A)Loyalty of co-worker versus trust of co-worker
B)Trust of co-worker versus the honesty of the workplace
C)Honesty of the workplace versus the privacy of an individual
D)Privacy of an individual versus loyalty of co-worker

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 3

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

Accepted Answer

The answer of In the Lone Star School District case,the...

Question 4

In the Cleveland Custom Cabinets case,the owner of the company thought it was all right to manipulate the financial statement numbers primarily because:
A)He wanted to improve earnings to increase the share price of company stock
B)The treatment recommended by the owner for estimating overhead conformed to GAAP
C)He was the sole owner of the company and controlled the board of directors
D)He got approval from the auditors

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 5

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

Accepted Answer

Fair treatment is not a rationalization for cheating, but rather the opposite - it is a reason why cheating is not acceptable. Ethical relativism, situational ethics, and cultural conditioning are all examples of ways in which a student might attempt to justify cheating behavior.

Question 6

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.

Accepted Answer

Civility refers to being polite, respectful, and courteous towards others. Ethics, on the other hand, refers to moral principles that guide an individual’s behavior. While being civil is generally seen as a positive trait, it is possible for someone to exhibit civility towards others while engaging in unethical behavior, such as lying or cheating. Similarly, someone can be ethical and still be perceived as uncivil if they lack social skills or do not communicate effectively. However, the best answer choice is B as it directly addresses the relationship between civility and ethics.

Question 7

In the NYC Subway Death case,the reason that no bystanders helped Ki-Suck Han was probably due to:
A)Moral blindness and ethical fading
B)Bystander effect and moral blindness
C)Blind spot and moral blindness
D)Ethical fading and bystander effect

Accepted Answer

The bystander effect suggests that individuals are less likely to help a victim when other people are present, while moral blindness refers to the inability to see the ethical implications of one's actions. Both concepts can explain the lack of intervention by bystanders in the NYC Subway Death case.

Question 8

In the Capitalization versus Expensing case the main ethical issue is whether Gloria Hernandez should:
A)Capitalize or expense $1 million of expenditures
B)Report her superiors' actions to the CEO
C)Talk to the audit committee about the pressure imposed by her supervisor
D)Become a whistle blower

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 9

Kevin Lowe's ethical dilemma in the Eating Time case can best be described as whether to:
A)Date another staff member of the CPA firm
B)Inform his supervisor about a lack of diligence of other staff accountants
C)Quit his job because he can't meet the firm's expected quality of work
D)Devote time on an audit and not charge it to the job

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 10

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

Accepted Answer

An employee has the right to expect fair evaluations that are based on their performance and achievements in the job. This means that the evaluation should not be biased, discriminatory, or influenced by personal factors.

Question 11

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

Accepted Answer

An ethical dilemma involves a choice between two moral principles that are in conflict with each other. This can cause a difficult decision as both options have ethical implications. Ethical relativism refers to the concept that moral principles are culturally and personally subjective, situational ethics involves making ethical decisions on a case-by-case basis, and conflict ethics is not a commonly used term in ethical discourse.

Question 12

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

Accepted Answer

The primary ethical issue in the Giles and Regas case is whether a superior (Giles) should become involved in a dating relationship with a subordinate (Regas). This creates a conflict of interest and raises concerns about favoritism, unequal treatment, and abuse of power. It also violates many organizational policies and ethical standards that prohibit romantic or sexual relationships between supervisors and subordinates. The case highlights the need for clear guidelines and training on workplace relationships, as well as the importance of reporting and addressing ethical violations to ensure a safe and fair work environment. The other choices are not relevant or significant ethical issues in this case.

Question 13

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

Accepted Answer

The relationship between legal and ethical is that legal sets the minimum standard for behavior while ethical requires us to do more than required by the law but less than the law allows. Ethical behavior is not always the same as legal behavior as some actions may be legal but not necessarily ethical. It is important for individuals to consider both legal and ethical implications before making decisions.

Question 14

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

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 15

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)Penn State scandal
C)Betty Vinson's actions at World Com
D)DigitPrint case discussed in the chapter

Accepted Answer

The DigitPrint case was not discussed in the chapter, and therefore cannot be used as an example of rationalizing wrong-doing through situational ethics. The other three examples (cheating at UNC, Penn State scandal, and Betty Vinson's actions at WorldCom) all involve individuals using situational ethics to justify their unethical actions.

Question 16

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

Accepted Answer

The Long-Term Orientation dimension measures the extent to which a culture values short versus long-term results. Some cultures prioritize immediate results and gratification, while others take a more patient, long-term approach. This could play out in various ways in the workplace, such as how a culture views investment in employee training programs or plans for strategic development.

Question 17

Civility requires all but the following:
A)Restraint
B)Politeness
C)Respect
D)Disregard

Accepted Answer

Disregard is the opposite of civility because it means ignoring or being rude to others. Restraint, politeness, and respect are all necessary components of civility.

Question 18

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

Accepted Answer

The cultural value of individualism reflects the degree to which a society reinforces individual or collective achievement. It is characterized by a focus on personal autonomy, self-expression, and self-reliance. This value places a high importance on individual freedom, independence, and achievement, rather than on collective goals or group identities.

Question 19

The country with the highest Power Distance score is:
A)United States
B)United Kingdom
C)Japan
D)Russia

Accepted Answer

According to Hofstede's cultural dimensions theory, Russia has the highest Power Distance score, which means that there is a significant power distance between those in positions of authority and those who are not. This can impact communication, decision-making, and leadership styles in the country. The United States, United Kingdom, and Japan all have lower Power Distance scores than Russia.

Question 20

In the Shifty Industries case,the primary ethical issue can be stated as:
A)Whether an accountant should claim a higher section 179 deduction ($100,000) than allowed by law.
B)Whether an accountant should claim any section 179 deduction or not.
C)Whether an accountant should claim inflated expenses on the company tax return.
D)Whether an accountant should claim a section 179 deduction ($25,000) as allowed by law.

Accepted Answer

The primary ethical issue in the Shifty Industries case is whether the accountant should claim a higher section 179 deduction ($100,000) than allowed by law. This action would be considered fraudulent and unethical as it violates accounting norms and regulations. The accountant should only claim the section 179 deduction that is legally allowed ($25,000) to avoid any ethical and legal issues.

Quiz 1: Ethical Reasoning: Implications for Accounting

The main issue in the Reneging on a Promise case is:

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

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

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

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

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

In the NYC Subway Death case,the reason that no bystanders helped Ki-Suck Han was probably due to:

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

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

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

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

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

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

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

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:

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:

Civility requires all but the following:

The cultural value of Individualism reflects:

The country with the highest Power Distance score is:

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