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Accounting Chapter 29 Final

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

What is the purpose of ethics?

a)

Ethics prevent problems from occurring.

b)

Ethics are a substitute for rules and laws.

c)

Ethics help people know how to do what is right.

d)

Ethics are punishments for those who make mistakes.

2.

Ethics help _________ the roles and responsibilities of all accountants.

a)

differentiate

b)

integrate

c)

standardize

d)

minimize

3.

Which of the following examples demonstrates the relationship between ethics and efficiency:

a)

A company’s code of ethics helps accountants respond to dilemmas quickly.

b)

A company wastes hours of paid time reviewing ethical guidelines.

c)

Accountants who follow ethics save time because they never make mistakes.

d)

Efficient business practices always lead to ethical behavior.

4.

If an accountant decides to “fudge the numbers” in a financial statement,

a)

the company’s stocks will perform better.

b)

the accountant is breaking the law.

c)

the accountant is practicing due care.

d)

the company will lose efficiency.

5.

If an accountant keeps well-organized, accurate financial records, their company is likely to

a)

commit tax evasion.

b)

struggle with decision-making.

c)

guarantee a profit.

d)

develop smarter business plans.

6.

Accountants must take ownership of their roles and be accountable for the values of the profession. This example illustrates the ethical principle of

a)

transparency/full disclosure.

b)

responsibility.

c)

the public interest.

d)

confidentiality.

7.

Evelyn refused to overstate earnings, even though she was instructed to do so by her supervisor. Evelyn is demonstrating

a)

integrity.

b)

confidentiality.

c)

objectivity/independence.

d)

transparency/full disclosure.

8.

Which of the following is an example of the principle of transparency/full disclosure:

a)

Tristan adds notes to his financial statements to explain a new company policy.

b)

An accounting firm cannot hire Catherine, because her husband works for one of its clients.

c)

A company regularly sends its accountants to professional development conferences.

d)

Russell always completes his financial statements on time and without mistakes.

9.

Which ethical accounting principle requires that accountants always strive to improve and do the best they can?

a)

Confidentiality

b)

Objectivity/Independence

c)

Responsibility

d)

Due care

10.

Marty’s accounting firm just took on a new client—the company where Marty’s father used to work before he retired. Marty is risking his

a)

due care.

b)

objectivity/independence.

c)

confidentiality.

d)

integrity.

11.

When preparing her company's budget, Tatiana’s manager told her that the company would be merging with another company. To maintain her ethics, Tatiana should

a)

make sure the merger benefits the public interest.

b)

maintain her independence.

c)

keep this information confidential.

d)

report this information to the SEC.

12.

An accountant should consider how their work affects society as a whole. This is an example of which ethical principle?

a)

Objectivity/Independence

b)

The public interest

c)

Confidentiality

d)

Integrity

13.

Behaving ethically means doing

a)

what your friends do.

b)

only what’s legal.

c)

the right thing.

d)

what benefits you the most.

14.

Whitley’s ethical beliefs are the same whether she’s at work, at school, or hanging out with her friends. Whitley follows

a)

ethical principles.

b)

situational beliefs.

c)

ethical consequences.

d)

popular beliefs.

15.

What is one benefit of following ethical principles?

a)

They are restrictive.

b)

They simplify your decision-making process.

c)

They eliminate the need for decisions.

d)

They change often.

16.

Which of the following is an ethical issue:

a)

Deciding whether to have french fries or a salad

b)

Choosing between buying a new shirt or a new book

c)

Deciding whether to lie to a friend or not

d)

Choosing which movie to see this weekend

17.

Ethical issues deal with __________ choices.

a)

right and wrong

b)

bad

c)

all

d)

no

18.

Vivian told her parents she was going to the library to study when she was actually going to the movies with friends. Her parents found out, and now they don’t believe Vivian when she tells them where she’s going. Because of her behavior, Vivian is facing a(n)

a)

consequence.

b)

ethical principle.

c)

decision-making process.

d)

legal problem.

19.

Integrity means acting with

a)

humility

b)

leadership skills

c)

a sense of humor

d)

honesty

20.

At work, a customer gives Shannon an extra $10. Instead of pocketing the money, Shannon lets the customer know he overpaid. Shannon is acting with

a)

viability

b)

integrity

c)

transparency

d)

rule of law

21.

Marc keeps his friend’s secret instead of sharing it with the rest of his friends. Which ethical principle is Marc illustrating?

a)

Transparency

b)

Viability

c)

Trust

d)

Accountability

22.

Holden’s group gets a low grade on a project because he didn’t complete his share of the work. He owns up to his mistake and apologizes. Holden is demonstrating

a)

trust

b)

viability

c)

rule of law

d)

accountability

23.

When DeShawn’s teacher compliments his work on his group project, he’s sure to give credit to the other group members who helped. DeShawn is showing

a)

transparency

b)

viability

c)

rule of law

d)

trust

24.

If one of your coworkers is treating another coworker unfairly, what is the ethical thing to do?

a)

Speak up

b)

Ignore it

c)

Be aggressive

d)

Look for another job

25.

Ava doesn’t agree with her classmate’s opinion, but she listens carefully instead of starting an argument or insulting her. Which ethical principle is Ava illustrating?

a)

Integrity

b)

Transparency

c)

Respect

d)

Trust

26.

How can you show respect for a person you’re speaking with?

a)

Avoid listening to his/her opinions

b)

Start an argument when you don’t agree

c)

Interrupt when you have a point

d)

Be polite and maintain eye contact

27.

Following your teacher’s guidelines is an example of which ethical principle?

a)

Transparency

b)

Rule of law

c)

Trust

d)

Viability