Which of the following behaviours is NOT unethical?
A) Delaying the write-down of obsolete inventories due to competitive pressures.
B) Recording false sales and purchases.
C) Selectively assigning costs to inventory.
D) Changing a company's accounting policy to match that of its competitors for comparative purposes.

Question

Quizplus · Accepted Answer

Changing a company's accounting policy to match that of its competitors for comparative purposes is not unethical as long as it is done transparently and in accordance with accounting standards. The other three options (delaying write-downs, recording false transactions, selectively assigning costs) are all forms of accounting fraud and therefore unethical.

Which of the Following Behaviours Is NOT Unethical