Question 1

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?

Accepted Answer

The answer of Lenise laid out three potential responses for...

Question 2

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?

Accepted Answer

Harry's belief in being a good person aligns with the principles of virtue ethics, which emphasizes the development of virtuous character traits in individuals as the foundation for ethical behavior.

Question 3

Both deontology and ___ emphasize duty to others.

Accepted Answer

Deontology and utilitarianism both emphasize duty to others, while ethical egoism emphasizes self-interest over others. Therefore, option A, utilitarianism, is the best choice.

Question 4

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?

Accepted Answer

Debra's statement aligns with the principles of ethical egoism, which state that individuals should prioritize their own self-interest above all else. This is in contrast to utilitarianism, which prioritizes the greater good for the greatest number of people, deontology, which prioritizes adherence to moral rules and duties, and virtue ethics, which emphasizes the development of virtuous character traits.

Question 5

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

Accepted Answer

Option B reflects the communitarian school of ethical thought, which emphasizes the importance of community over individuality and advocates for actions that benefit the community as a whole.

Question 6

Which of the following is most reflective of deontology?

Accepted Answer

Deontology is an ethical theory that holds that actions should be based on a set of moral rules or obligations rather than on the consequences of those actions. Michelle's decision to report fraud because she believes lying is always wrong reflects a deontological approach to ethics.

Question 7

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

Accepted Answer

Enron was created in 1985 from the merger of Houston Natural Gas Company and InterNorth Inc., two companies in the natural gas and pipeline industries.

Question 8

Which of the following is most reflective of ethical egoism?

Accepted Answer

Ethical egoism is the belief that individuals should act in their own self-interest. Inflating sales to get a bigger bonus for oneself is an action that prioritizes personal gain over the needs or interests of others, which is characteristic of ethical egoism. Choices A, C, and D do not necessarily prioritize self-interest over the needs or interests of others. Choice A is more reflective of a virtue ethics approach, while choices C and D prioritize duties and obligations to others.

Question 9

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

Accepted Answer

Virtue ethics emphasizes the character and virtues of the moral agent, while utilitarianism focuses on the consequences of actions to determine their moral worth.

Question 10

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?

Accepted Answer

According to the Langenderfer and Rockness model, the next step after consulting the AICPA Code of Professional Conduct is to determine one's options for how to respond to the ethics issue. This step involves analyzing the situation, identifying possible courses of action, and evaluating the consequences of each option. It is important to carefully consider all options before making a decision on how to proceed.

Question 11

Ethical egoism and utilitarianism are similar in that both:

Accepted Answer

Ethical egoism and utilitarianism are similar because both ethical theories are concerned with maximizing benefits, although they differ in whose benefits they prioritize: ethical egoism focuses on the individual's own benefit, while utilitarianism focuses on the greatest benefit for the greatest number.

Question 12

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?

Accepted Answer

The Langenderfer and Rockness model suggests that when faced with an ethical dilemma, individuals should consult the company's code of ethics to guide their decision-making.

Question 13

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

Accepted Answer

The answer of McDonald identified four criteria to be considered...

Question 14

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?

Accepted Answer

The answer of Arnold, having arrived at a preliminary decision...

Question 15

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?

Accepted Answer

Deontology is a school of ethical thought that emphasizes the moral rules and duties we should follow regardless of the consequences. Professional codes of ethics in accounting are based on non-changing principles, such as integrity, objectivity, confidentiality, and professional behavior, that outline what is expected of accountants in their professional roles. These principles constitute a universal code of ethics that must be followed by accounting professionals regardless of the consequences. Thus, professional codes of ethics in accounting are most closely related to deontology.

Question 16

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?

Accepted Answer

Deontology is a school of ethical thought that holds that certain actions are inherently right or wrong, regardless of their consequences. Maria's belief that cheating on taxes is always wrong aligns with this philosophy. Ethical egoism, on the other hand, holds that individuals should act in their own self-interest. Utilitarianism focuses on maximizing overall happiness or pleasure. Virtue ethics emphasizes the importance of personal character and integrity.

Question 17

Ethical egoism and deontology both teach that:

Accepted Answer

Ethical egoism focuses on actions that benefit oneself, regardless of their impact on others, while deontology is concerned with adherence to a set of rules or duties, not the consequences of actions.

Question 18

Which of the following is most reflective of virtue ethics?

Accepted Answer

Virtue ethics is centered around the idea of being true to one's moral character, which is reflected in Annie's approach to ethical decision-making. Jeff's actions in B reflect a consequentialist or utilitarian approach, as he is seeking personal gain rather than considering the ethical implications of his actions. Michelle's actions in C could be reflective of deontological ethics, as she believes in a universal rule against lying, but it doesn't necessarily reflect a focus on developing virtuous character traits. Shan's actions in D could reflect utilitarianism or possibly deontology, but it doesn't necessarily reflect a focus on developing virtuous character traits.

Question 19

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?

Accepted Answer

Dexter's statement suggests that he follows the utilitarian ethical school of thought, which holds that actions are morally right if they lead to the greatest amount of happiness or benefit for the greatest number of people. His statement suggests that he believes tax evasion is ethically justifiable if it benefits more people than it harms.

Question 20

Which of the following is most reflective of utilitarianism?

Accepted Answer

Utilitarianism is focused on maximizing the overall happiness or well-being of society as a whole. Shan's decision to coach as many CPA exam candidates as possible, despite his busy schedule, reflects this mindset as it benefits a greater number of individuals and society as a whole. The other choices do not necessarily prioritize the well-being of society over individual interests or personal beliefs.

Quiz 17: Professionalism, Ethics, and Career Planning