About Ethics In Accounting (1A)

2.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 2) respond to the following:Select the word and/or phrase that completes the following statement:Integrity is an important fundamental element of the accounting profession. Integrity requires accountants to be _______________________________ with a client's financial information.

Honest, accurate and forthright
Accurate, candid and forthright
Honest, candid and forthright
Honest, candid and accurate
Each member of the relay team has a very defined role and set of responsibilities in order to win the race.

Correct Answer

A. Honest, candid and forthright

Explanation

Integrity is an important fundamental element of the accounting profession. Integrity requires accountants to be honest, candid and forthright with a client’s financial information.

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3.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 2) respond to the following:Select the word and/or phrase that is NOT part of the statement:Objectivity and independence are important ethical values in the accounting profession. Accountants must remain free ______________________________________________ when conducting accounting services.

From conflicts of interest
Disclosing client information
Questionable business relationships
All of the above

Correct Answer

A. All of the above

Explanation

Objectivity and independence are important ethical values in the accounting profession. Accountants must remain free from conflicts of interest and other questionable business relationships when conducting accounting services.

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4.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 3) respond to the following:Select the "EFFECTS" discussed in the article:

Business reputation
Personal consequences
Criminal activities
Usefulness of financial statements

Correct Answer(s)

A. Business reputation
A. Personal consequences
A. Criminal activities
A. Usefulness of financial statements

Explanation

The article discusses the effects of ethics in accounting, including business reputation, personal consequences, criminal activities, and the usefulness of financial statements. Ethics in accounting can impact a company's reputation, as unethical practices can lead to a loss of trust and credibility among stakeholders. Personal consequences can also occur, such as legal or professional repercussions for individuals involved in unethical behavior. Additionally, the article highlights the potential for criminal activities in accounting, such as fraud or embezzlement. Finally, ethics in accounting is important for ensuring the accuracy and reliability of financial statements, which are essential for decision-making and assessing the financial health of a company.

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5.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 4) respond to the following:Select the choice that reflects the term(s) and/or phrases that complete the following statement (in sequence):New ____ standards require companies to institute systems and assess those systems annually. Companies also are required to provide full disclosure of _ ___ _ items in periodic reports. In section _, the act clearly states the penalties for unethical accountants, which includes fines and imprisonment.

Disclosure, internal control, off-balance sheet, 802, disclosure
Disclosure, internal control, off-balance sheet , 802
Disclosure, off-balance sheet, 802, internal control

Correct Answer

A. Disclosure, internal control, off-balance sheet , 802

Explanation

New disclosure standards require companies to institute internal control systems and assess those systems annually. Companies also are required to provide full disclosure of off-balance sheet items in periodic reports. In section 802, the act clearly states the penalties for unethical accountants, which includes fines and imprisonment.

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6.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 5) respond to the following:The IMA notes the following ethical standards in managerial accounting, EXCEPT:

Credibility
Competence
Confidentiality
Integrity
Materiality

Correct Answer

A. Materiality

Explanation

The IMA notes the following ethical standards in managerial accounting: competence, confidentiality, integrity and credibility

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7.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 6) respond to the following:Select the choice that reflects the term(s) and/or phrases that complete the following statement (in sequence):Ethics refer to the level of honesty you carry into your job. In principle, ethics are _____ and can vary between individuals with opposing views of right and wrong, which is why codes of ethics are created by certain groups to govern themselves. In accounting, there is only one acceptable position -- complete _ and _. Never are accountants more tempted to forgo that ultimate ethical duty as when _ _____ are involved.

Subjective, trust, honesty, stock accounts
Objective, trust, honesty, cash accounts
Subjective, trust, honesty, cash accounts

Correct Answer

A. Subjective, trust, honesty, cash accounts

Explanation

Ethics refer to the level of honesty you carry into your job. In principle, ethics are subjective and can vary between individuals with opposing views of right and wrong, which is why codes of ethics are created by certain groups to govern themselves. In accounting, there is only one acceptable position -- complete trust and honesty. Never are accountants more tempted to forgo that ultimate ethical duty as when cash accounts are involved.

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8.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 7) respond to the following:Select the entities discussed in the article that "created the 'Generally Accepted Accounting Principles' that define the ethical practices and principles of accounting that businesses use."

SEC
GAAP
FASB
AICPA

Correct Answer(s)

A. SEC
A. FASB

Explanation

The entities discussed in the article that "created the 'Generally Accepted Accounting Principles' that define the ethical practices and principles of accounting that businesses use" are the SEC (Securities and Exchange Commission) and FASB (Financial Accounting Standards Board). The SEC is responsible for overseeing the financial reporting of public companies and has the authority to establish accounting standards. FASB is an independent organization that sets accounting standards for private companies. The AICPA (American Institute of Certified Public Accountants) is not mentioned in the question as being involved in creating GAAP.

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9.

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 7) respond to the following:The "separation of functions within the department" is an example of an INTERNAL CONTROL.

True
False

Correct Answer

A. True

Explanation

The statement is true because the "separation of functions within the department" is a commonly used internal control measure in accounting. This control ensures that different tasks or responsibilities are assigned to different individuals within the department, reducing the risk of errors, fraud, or conflicts of interest. By separating functions, it becomes more difficult for one person to manipulate or misuse accounting information for personal gain. This internal control helps to promote transparency, accuracy, and ethical behavior within the accounting department.

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10.

Generally, ethical behavior applies at all times, in any function in business.

True
False

Correct Answer

A. True

Explanation

Ethical behavior is a fundamental principle that should be followed in all aspects of business, regardless of the specific function. It involves conducting business in a fair, honest, and responsible manner, considering the impact on stakeholders, and adhering to moral and legal principles. Whether it is in finance, marketing, operations, or any other function, ethical behavior is crucial for maintaining trust, reputation, and long-term success. Therefore, the statement that ethical behavior applies at all times, in any function in business, is true.

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About Ethics In Accounting (1a)

Based on your reading of the ABOUT Ethics in Accounting Reading Material (CA-4, given article 1) respond to the following:Ethics and Integrity Standards are based on the following, EXCEPT:

Quiz Preview

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 3) respond to the following:Select the "EFFECTS" discussed in the article:

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 5) respond to the following:The IMA notes the following ethical standards in managerial accounting, EXCEPT:

Based on your reading of the ABOUT Ethics in Accounting Reading Material (given article 7) respond to the following:The "separation of functions within the department" is an example of an INTERNAL CONTROL.

Generally, ethical behavior applies at all times, in any function in business.