Deck 17: Professionalism, Ethics, and Career Planning

Question 1

Which of the following statements best applies a characteristic of a professional in the context of accounting?

A)Beverly, a government accountant, prepared two versions of a presentation on governmental financial statements to deliver to two different audiences.
B)Mark, a corporate accountant, resolved an ethical dilemma based on the steps recommended by Langenderfer and Rockness.
C)Both Beverly, a government accountant, prepared two versions of a presentation on governmental financial statements to deliver to two different audiences and Mark, a corporate accountant, resolved an ethical dilemma based on the steps recommended by Langenderfer and Rockness.
D)Neither Beverly, a government accountant, prepared two versions of a presentation on governmental financial statements to deliver to two different audiences nor Mark, a corporate accountant, resolved an ethical dilemma based on the steps recommended by Langenderfer and Rockness.

Answer 1

C

Question 2

According to Bell, a professional integrates knowledge from many disciplines.Knowledge about ethics requires an accountant to integrate knowledge from:

A)Philosophy.
B)Communication.
C)Science.
D)Psychology.

Answer 2

A

Question 3

As professionals, accountants often use a specialized knowledge base.That specialized knowledge base can come from:

A)FASB pronouncements.
B)Textbooks in accounting and other fields.
C)Both FASB pronouncements and Textbooks in accounting and other fields.
D)Neither FASB pronouncements nor Textbooks in accounting and other fields.

Answer 3

C

Question 4

Bumble Beasley remarked: "The only way to be an accounting professional is to earn a CPA license." Which of the following statements is most true?

A)There are many ways to be an accounting professional.
B)All accounting professionals have degrees in accounting.
C)Both there are many ways to be an accounting professional and all accounting professionals have degrees in accounting.
D)Neither there are many ways to be an accounting professional nor all accounting professionals have degrees in accounting.

Question 5

Bell's characteristics of a professional include the ability to think in which of the following ways?

A)Rationally
B)Logically
C)Coherently
D)All of these

Question 6

According to Bell, a professional integrates knowledge from many disciplines.Accounting information systems integrates knowledge from:

A)Accounting and finance.
B)Management and computer information systems.
C)Both accounting and finance and management and computer information systems.
D)Neither accounting and finance nor management and computer information systems.

Question 7

McDonald wrote that professionals utilize a specialized knowledge base.Which of the following is the best example of the specialized knowledge base in accounting?

A)Reconciling a bank statement
B)Writing a check
C)Making adjusting entries
D)Using spreadsheet software

Question 8

Which of the following demonstrates the least professional behavior based on Bell's characteristics?

A)Developing a presentation based on the characteristics of the audience
B)Correctly applying FASB standards for short-term investments
C)Completing continuing professional education courses
D)Ignoring principles from management and finance

Question 9

McDonald wrote that professionals utilize complex skills.Complex skills in accounting include:

A)Totaling the columns in a trial balance.
B)Listing the three sections of a balance sheet.
C)Recommending internal controls for a business process.
D)Filing tax returns electronically.

Question 10

Which of the following best pairs a characteristic of a professional with an example of that characteristic?

A)Communicates effectively, selects software using the weighted-rating model
B)Integrates knowledge from many disciplines, completes the steps in the systems development life cycle
C)Communicates effectively, analyzes internal controls in the sales/collection process
D)Integrates knowledge from many disciplines, gives two examples of COSO documents

Question 11

One mark of a professional is adherence to a code of ethical behavior.Which of the following statements is most true?

A)As the phrase is used in accounting, "code of ethical behavior" refers to utilitarianism and ethical egoism.
B)As the phrase is used in accounting, "code of ethical behavior" refers to deontology and virtue ethics.
C)Both as the phrase is used in accounting, "code of ethical behavior" refers to utilitarianism and ethical egoism and as the phrase is used in accounting, "code of ethical behavior" refers to deontology and virtue ethics are true.
D)Neither as the phrase is used in accounting, "code of ethical behavior" refers to utilitarianism and ethical egoism nor as the phrase is used in accounting, "code of ethical behavior" refers to deontology and virtue ethics is true.

Question 12

Depreciation is the periodic allocation of an asset's cost to the periods which benefit from the asset's use.That statement is an example of:

A)Technical knowledge.
B)A specialized knowledge base.
C)Both technical knowledge and a specialized knowledge base.
D)Neither technical knowledge nor a specialized knowledge base.

Question 13

Bell's characteristics of a professional include the ability to recognize the influence of:

A)Political and social forces.
B)Economic forces.
C)Legal and regulatory forces.
D)All of these.

Question 14

Which of the following pairs provides examples of appropriately using technical knowledge in accounting?

A)Closing nominal accounts at the end of the year, reconciling a bank statement
B)Closing nominal accounts at the end of the year, using Steps for Better Thinking
C)Reconciling a bank statement, using Steps for Better Thinking
D)Adjusting the accounts for accrued revenue, applying complex FASB standards

Question 15

The PCAOB has:

A)Eliminated autonomy of practice in the accounting profession.
B)Limited autonomy of practice in the accounting profession.
C)Had no effect on autonomy of practice in the accounting profession.
D)Worked with FASB to enhance autonomy of practice in the accounting profession.

Question 16

McDonald stated that professionals have autonomy of practice.In the accounting profession, autonomy of practice has been limited by:

A)FASB.
B)COSO.
C)PCAOB.
D)All of these.

Question 17

According to Bell, accountants should recognize the influence of:

A)The Sarbanes-Oxley Act of 2002.
B)Foreign currency exchange rates.
C)Both the Sarbanes-Oxley Act of 2002 and foreign currency exchange rates.
D)Neither the Sarbanes-Oxley Act of 2002 nor foreign currency exchange rates.

Question 18

Which of the following best pairs a characteristic of a professional with an example of that characteristic?

A)Appropriately uses technical knowledge, closed nominal accounts at the end of the fiscal year
B)Integrates knowledge from many disciplines, closed nominal accounts at the end of the fiscal year
C)Appropriately uses technical knowledge, prepared a schedule of cash receipts and cash payments in Excel
D)Integrates knowledge from many disciplines, prepared a schedule of cash receipts and cash payments in Excel

Question 19

Which of the following pairs provides examples of integrating knowledge from other disciplines in accounting?

A)Completes the steps in the systems development life cycle, applies expectancy theory to improve motivation
B)Selects software using the weighted-rating model, analyzes internal controls in the sales/collection process
C)Analyzes internal controls in the sales/collection process, applies expectancy theory to improve motivation
D)Prepares a schedule of cash receipts in Excel, gives two examples of COSO documents

Question 20

Which of the following statements best applies a characteristic of a professional in the context of accounting?

A)Raul, a licensed CPA, learned to speak a foreign language in preparation for his firm's expansion into Europe.
B)Paula, a corporate accountant, studied the roles men and women play in business in Egypt.
C)Both Raul, a licensed CPA, learned to speak a foreign language in preparation for his firm's expansion into Europe and Paula, a corporate accountant, studied the roles men and women play in business in Egypt.
D)Neither Raul, a licensed CPA, learned to speak a foreign language in preparation for his firm's expansion into Europe nor Paula, a corporate accountant, studied the roles men and women play in business in Egypt.

Question 21

Which of the following schools of ethical thought teaches that people are fundamentally solitary creatures, each pursuing their own best interest?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 22

Ethics is a discipline that:

A)Studies values and guidelines for living.
B)Explains why ethical egoism is the best school of ethical thought.
C)Both studies values and guidelines for living and explains why ethical egoism is the best school of ethical thought.
D)Neither studies values and guidelines for living nor explains why ethical egoism is the best school of ethical thought.

Question 23

Which of the following is most closely associated with the second step of the Langenderfer and Rockness model?

A)asset valuation
B)utilitarianism
C)Bernie Madoff
D)autonomy of practice

Question 24

In accounting, ethics issues can arise in:

A)Revenue recognition.
B)Earnings smoothing.
C)Both revenue recognition and earnings smoothing.
D)Neither revenue recognition nor earnings smoothing.

Question 25

Which of the following schools of ethical thought teaches that ethical actions are a natural outgrowth of being a fundamentally ethical person?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 26

The first step in the Langenderfer and Rockness model is:

A)Decide the best course of action.
B)Identify ethics issues and stakeholders.
C)Identify the facts.
D)Determine which school of ethical thought to follow.

Question 27

Ethics is a set of standards that:

A)Is established by a particular group.
B)Is imposed on members of the group to regulate behavior.
C)Both established by a particular group and imposed on members of the group to regulate behavior.
D)Neither established by a particular group nor imposed on members of the group to regulate behavior.

Question 28

Which of the following is associated with Charles Ponzi?

A)international postal reply coupons
B)Bernie Madoff
C)Adelphia Communications Corporation
D)none of these

Question 29

Which of the following steps in the Langenderfer and Rockness model comes first?

A)Identify the alternative courses of action.
B)Reach a decision as to the appropriate course of action.
C)Discuss the alternative with a trusted person.
D)Define the norms, principles and values related to the situation.

Question 30

John and Gus Rigas are associated with:

A)international postal reply coupons
B)Bernie Madoff
C)Adelphia Communications Corporation
D)none of these

Question 31

In accounting, ethics issues can arise in:

A)Determining the best school of ethical thought.
B)Asset valuation.
C)Both determining the best school of ethical thought and asset valuation.
D)Neither determining the best school of ethical thought nor asset valuation.

Question 32

Jon is a new employee at ADX Corporation.He was working late one night when he saw Beatrice, a long-time ADX employee, leaving the building with a company computer.Determining whether Beatrice is an ethical egoist or deontologist is relevant in the ___ step of the Langenderfer and Rockness model.

A)third
B)fifth
C)seventh
D)none of these

Question 33

Which of the following schools of ethical thought teaches that individuals have rights and that ethical principles are developed through reasoning?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 34

Jon is a new employee at ADX Corporation.He was working late one night when he saw Beatrice, a long-time ADX employee, leaving the building with a company computer.Based on the Langenderfer and Rockness model, what should Jon do?

A)Inform Beatrice's supervisor.
B)Ask Beatrice why she was leaving the building with a company computer.
C)Consult ADX's code of ethics.
D)Take a photo of Beatrice leaving the building with the company computer.

Question 35

Which of the following schools of ethical thought teaches that the most ethical decision is the one that promotes the greatest good for the greatest number of stakeholders?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 36

Which of the following is most closely associated with the third step of the Langenderfer and Rockness model?

A)asset valuation
B)utilitarianism
C)Bernie Madoff
D)autonomy of practice

Question 37

___ was turned in by his sons for a Ponzi scheme.

A)Charles Ponzi
B)Bernie Madoff
C)Jeff Skilling
D)Victor Vroom

Question 38

Schools of ethical thought are:

A)points of view that help decision makers determine what is ethical.
B)determined by the accounting profession.
C)Both points of view that help decision makers determine what is ethical and determined by the accounting profession.
D)Neither points of view that help decision makers determine what is ethical nor determined by the accounting profession.

Question 39

Langenderfer and Rockness proposed:

A)that deontology is the best ethical viewpoint for professional accountants.
B)an eight-step model for dealing with ethical dilemmas.
C)the Sarbanes-Oxley Act of 2002.
D)standards of professionalism for accountants.

Question 40

Jon is a new employee at ADX Corporation.He was working late one night when he saw Beatrice, a long-time ADX employee, leaving the building with a company computer.All of the following are relevant to the fourth step of the Langenderfer and Rockness model except:

A)Say nothing.
B)Tell Beatrice's supervisor.
C)Consult ADX's code of ethics.
D)Ask Beatrice why she was leaving the building with a company computer.

Question 41

Lenise laid out three potential responses for a violation of her company's ethics code.Based on the Langenderfer and Rockness model, what should she do next?

A)Determine who will be affected by each potential response.
B)Speculate about what will happen for each of the three responses.
C)Talk with a trusted co-worker.
D)Determine if her company's ethics code is based primarily on ethical egoism or some other school of ethical thought.

Question 42

Debra and Dexter are CPAs specializing in tax planning and preparation.Their father, Harry, taught them that being a good person will lead to doing good things.Which school of ethical thought does Harry follow?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 43

Both deontology and ___ emphasize duty to others.

A)utilitarianism
B)ethical egoism
C)Both utilitarianism and ethical egoism
D)Neither utilitarianism nor ethical egoism

Question 44

Debra and Dexter are CPAs specializing in tax planning and preparation.Recently, Debra stated that, in her view, her highest responsibility is to do what's right for herself.Which school of ethical thought does Debra follow?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 45

The chapter discussed four schools of ethical thought.Which of the following pairs includes ideas from a single school?

A)Community is more important than individuality; people within a community should do what's best for them individually.
B)Community is more important than individuality; people within a community should do what's best for the community as a whole.
C)Community values cannot change based on circumstances or potential outcomes; people within a community should do what's best for them individually.
D)Community values cannot change based on circumstances or potential outcomes; people within a community should do what's best for the community as a whole.

Question 46

Which of the following is most reflective of deontology?

A)In making ethical decisions, Annie strives to be true to her basic ethical nature.
B)Jeff inflated his division's sales to get a bigger bonus for himself.
C)Michelle reported fraud she had discovered because she believes that lying is always wrong.
D)Shan agreed to coach as many CPA exam candidates as possible, in spite of his busy schedule.

Question 47

Which of the following companies was created in 1985 from the merger of two other companies in the natural gas and pipeline industries?

A)Enron
B)Arthur Andersen
C)BMIS
D)Adelphia Communications Corporation

Question 48

Which of the following is most reflective of ethical egoism?

A)In making ethical decisions, Annie strives to be true to her basic ethical nature.
B)Jeff inflated his division's sales to get a bigger bonus for himself.
C)Michelle reported fraud she had discovered because she believes that lying is always wrong.
D)Shan agreed to coach as many CPA exam candidates as possible, in spite of his busy schedule.

Question 49

Virtue ethics and utilitarianism differ in that ___ focuses on action, while ___ emphasizes character.

A)virtue ethics; utilitarianism
B)utilitarianism; virtue ethics
C)consequences; intentions
D)intentions; consequences

Question 50

Linda consulted the AICPA Code of Professional Conduct for an ethics issue she had recently discovered.Based on the Langenderfer and Rockness model, what should she do next?

A)Prepare a presentation of the code for the company.
B)Determine her options for how to respond.
C)Talk with a trusted co-worker.
D)Decide how to respond to the ethics issue.

Question 51

Ethical egoism and utilitarianism are similar in that both:

A)are concerned with "benefits."
B)place the concerns of individuals above concerns for society.
C)Both are concerned with "benefits" and place the concerns of individuals above concerns for society.
D)Neither are concerned with "benefits" nor place the concerns of individuals above concerns for society.

Question 52

Beverly determined that a case she was investigating dealt with embezzling cash, which would impact the company's employees and other groups.Based on the Langenderfer and Rockness model, what should she do next?

A)Consult the company's code of ethics.
B)Talk with a trusted co-worker.
C)Develop a list of alternative actions.
D)Look up the definition of embezzlement.

Question 53

McDonald identified four criteria to be considered a professional.One of them requires accounting professionals to adopt the ___ school of ethical thought.

A)utilitarian
B)ethical egoism
C)professional
D)none of these

Question 54

Arnold, having arrived at a preliminary decision about how to resolve an ethical dilemma, discussed his alternatives with a trusted co-worker.Based on the Langenderfer and Rockness model, what should he do next?

A)Determine the stakeholders involved in the ethical dilemma.
B)Evaluate the consequences of his proposed action.
C)Decide what to do.
D)Determine which school of ethical thought his co-worker follows.

Question 55

Professional codes of ethics in accounting set out non-changing principles developed through reasoning; those principles constitute a universal code of ethics.Therefore, professional codes of ethics in accounting are most closely related to which school of ethical thought?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 56

Debra and Dexter are CPAs specializing in tax planning and preparation.At a recent professional event, Maria, a fellow CPA working for another firm, explained her belief that cheating on taxes is always wrong.Which school of ethical thought does Maria follow?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 57

Ethical egoism and deontology both teach that:

A)the ethics of an action do not depend on its impact on others.
B)ethics are based on a universal moral code.
C)Both the ethics of an action do not depend on its impact on others and ethics are based on a universal moral code.
D)Neither the ethics of an action do not depend on its impact on others nor ethics are based on a universal moral code.

Question 58

Which of the following is most reflective of virtue ethics?

A)In making ethical decisions, Annie strives to be true to her basic ethical nature.
B)Jeff inflated his division's sales to get a bigger bonus for himself.
C)Michelle reported fraud she had discovered because she believes that lying is always wrong.
D)Shan agreed to coach as many CPA exam candidates as possible, in spite of his busy schedule.

Question 59

Debra and Dexter are CPAs specializing in tax planning and preparation.Recently, Dexter commented that there is nothing ethically wrong with tax evasion, so long as the number of people who benefit is greater than the number of people harmed.Which school of ethical thought does Dexter follow?

A)ethical egoism
B)utilitarianism
C)deontology
D)virtue ethics

Question 60

Which of the following is most reflective of utilitarianism?

A)In making ethical decisions, Annie strives to be true to her basic ethical nature.
B)Jeff inflated his division's sales to get a bigger bonus for himself.
C)Michelle reported fraud she had discovered because she believes that lying is always wrong.
D)Shan agreed to coach as many CPA exam candidates as possible, in spite of his busy schedule.

Question 61

Langenderfer and Rockness suggested an eight-step model for resolving ethical dilemmas.Consider each of the independent statements that follow; indicate what would happen immediately after the action listed based on the Langenderfer and Rockness model.1) Arnold, having arrived at a preliminary decision about how to resolve an ethical dilemma, discussed his alternatives with a trusted co-worker.2) Beverly determined that a case she was investigating dealt with embezzling cash, which would impact the company's employees and other groups.3) Lenise laid out three potential responses for a violation of her company's ethics code.4) Linda consulted the AICPA Code of Professional Conduct for an ethics issue raised by a co-worker.5) Maria considered what would happen to various stakeholders for each of three alternatives she had identified.

Question 62

Miguel had just been promoted to Director of Accounts Receivable in the accounting department of TPC Corporation.His first responsibility was to develop and explain a better system for estimating and writing off bad debts.Without referring to the technical aspects of those tasks, discuss four things Miguel should do based on Bell's characteristics of a professional.

Question 63

Taylor became aware of a serious ethical breach in her company related to a small group of managers recording sales revenue inappropriately.In interviewing those managers about the issue, Taylor asked each one why they had committed the ethical breach.Use two of the four schools of ethical thought discussed in the text to create brief responses the managers would have given Taylor.For each response, indicate the relevant school of ethical thought.

Question 64

Consider each independent situation below.For each one, indicate the school of ethical thought the decision maker is using; circle one word or phrase that led you to your conclusion.
a.In making ethical decisions, Annie strives to be true to her basic ethical nature.
b.Jeff inflated his division's sales to get a bigger bonus for himself.
c.Michelle reported fraud she had discovered because she believes that lying is always wrong.
d.Shan agreed to coach as many CPA exam candidates as possible, in spite of his busy schedule.

Question 65

In your own words, explain the fundamental principles of each of the following schools of ethical thought: ethical egoism, utilitarianism, deontology, virtue ethics.

Question 66

Bell's characteristics of a professional are listed below on the right.Match each example on the left with the most appropriate characteristic on the right.Use each characteristic exactly once.

Question 67

The chapter discussed four infamous ethics cases in accounting: (a) Charles Ponzi, (b) Adelphia Communications Corporation, (c) Enron/Arthur Andersen and (d) Bernie Madoff.Indicate which case is most closely associated with each of the following items.1.Created from a merger of two other companies in the natural gas and pipeline industries
2.Filed for bankruptcy in December 2001
3.Filed for bankruptcy in June 2002
4.Harry Markopolos
5.International postal reply coupons
6.John and Gus Rigas
7.Most business came from the financial division
8.One family received more than $2 billion in loans from the company
9.Perpetrator was turned in by his sons
10.Sentenced to five years in federal prison for mail fraud

Question 68

Bell suggested seven characteristics necessary to be considered a professional.Revise each statement below to more appropriately reflect one of those characteristics; indicate the relevant characteristic in the space provided.

Question 69

Bell identified seven criteria to be a professional.Which criterion applies to each independent situation below?
1) Albert wrote an e-mail to a prospective new client.2) David used time value of money principles to calculate the price of a bond.3) Hal participated in an online conference about tax law changes.4) Jordan considered the impact of foreign currency exchange rates on an investment.5) Joshua calculated straight-line depreciation.6) Maria used the systems development life cycle to design a new AIS.7) Peggy completed the annual continuing professional education requirements for her Certified Fraud Examiner credential.8) Robert refused to falsify a tax return.9) Ryan prepared a written summary of tax rules for a client.10) Samantha compared the costs and benefits of a set of internal controls.

Question 70

Taylor became aware of a serious ethical breach in her company related to a small group of managers recording sales revenue inappropriately.She called a meeting of all the managers in the company and told them to "confess or else." The managers, particularly those who had not committed any ethical breach, became very angry and the meeting ended in chaos.Analyze Taylor's actions.Suggest a better approach for dealing with the ethics issue in her company; ensure that your suggestions are clearly applied to Taylor's situation.

Question 71

The chapter discussed four schools of ethical thought: (a) ethical egoism, (b) utilitarianism, (c) deontology and (d) virtues.Which school best describes each of the following independent items?
1.After being convicted of fraud, NRN Corporation's net assets were distributed to shareholders in proportion to their original investments.2.Ethical actions are a natural outgrowth of being a fundamentally ethical person.3.Everyone has an ethical obligation to pursue their own best interest.4.In a merger, the CEO of ATN Corporation inflated net income to get a better sales price for ATN.5.Jeff makes all ethics decisions based on the principles of his religion.6.People should never be used as a means to an end.7.Sally sees herself as an honest person; her actions are a result of that characteristic.8.The most ethical decision is the one that promotes the greatest good for the greatest number of stakeholders.

Question 72

List the four characteristics suggested by McDonald to be considered a professional.

Question 73

Supply the missing words/phrases below based on the definition of ethics in the text.Ethics is a set of (a) that differentiates (b), is established by (c), and is imposed on members of the group to (d).Ethics is a discipline that studies (e) for living and considers the (f) (or lack of it) for those values.

Question 74

McDonald suggested four characteristics necessary to be considered a professional.Revise each statement below to more appropriately reflect one of those characteristics; indicate the relevant characteristic in the space provided.