Why are ethics crucial to accounting?
A) Ethical behavior creates the most profit for the business.
B) Ethics are a tool which help the accountants balance the accounting equation.
C) For accounting information to be useful, it must be trusted and therefore the result of ethical decisions.
D) Ethics are important to consider when applying GAAP but do not apply to international accounting issues.
E) Ethics are a way to compute revenues and expenses, but they do not apply to assets, liabilities, and owners' equity.

Question

Quizplus · Accepted Answer

Trust is a key component of accounting information, and ethical decision-making is essential to establishing that trust. Without ethical behavior, financial information may be unreliable and undermine the credibility of the accounting profession. Therefore, ethics are crucial to accounting.

Why Are Ethics Crucial to Accounting