ETHICAL OBLIGATIONS AND DECISION-MAKING IN ACCOUNTING
CHAPTER 1 QUESTIONS AND ANSWERS
Integrity - CORRECT ANSWER✅✅An individual person acts on principle - a conviction that there is a
right way to act when faced with an ethical dilemma
Ethics - CORRECT ANSWER✅✅the principles of right and wrong that guide an individual in making
decisions
Morals - CORRECT ANSWER✅✅a person's standards of behavior or beliefs concerning what is and is not
acceptable for them to do.
Values - CORRECT ANSWER✅✅basic and fundamental beliefs that guide or motivate attitudes or
actions.
Values in Accounting: - CORRECT ANSWER✅✅independence, integrity, objectivity, professional
skepticism, and due care.
The Golden Rule in Business - CORRECT ANSWER✅✅wrong to think that separate standards of behavior
exist to guide our personal lives but that a different (lower) standard exists in business.
Laws - CORRECT ANSWER✅✅a collection of rules and regulations that come with penalties and
punishments if not followed.
Ethical Legalism - CORRECT ANSWER✅✅if an intended action is legal, it is, therefore ethical.
Useful Questions to Asked by an Ethical Individual - CORRECT ANSWER✅✅What does the law require of
me?
What do ethical standards of behavior demand of me?
How should I act to conform to both?
, Moral Point of View - CORRECT ANSWER✅✅requires that a decision maker be willing, at least
sometimes, to take an action that may not be in his/her best interest.
Moral Relativism - CORRECT ANSWER✅✅the view that moral or ethical statements, which vary from
person to person, are equally valid and no one's opinion of right and wrong is actually better than any
others.
Ethical Relativism - CORRECT ANSWER✅✅the philosophical view that what is right or wrong and good
or bad is not absolute but variable and relative, depending on the person, circumstances, or social
situation.
Relativists Points of Argument: - CORRECT ANSWER✅✅What's right for you may not be what's right for
me.
What's right for my culture won't necessarily be what's right for your culture.
No moral principles are true for all people at all times and in all places.
Cultural Relativism - CORRECT ANSWER✅✅the same action may be morally right in on society but be
morally wrong in another.
Situation Ethics - CORRECT ANSWER✅✅recognizes the existence of normative principles but question
whether they should be applied as strict directives or, instead, as guidelines that agents should use
when determining a course of ethical conduct
The Six Pillars of Character - CORRECT ANSWER✅✅trustworthiness, respect, responsibility, fairness,
caring, citizenship
Virtue Ethics - CORRECT ANSWER✅✅certain ideals, such as excellence or dedication to the common
good, toward which we should strive and which allow the full development of our humanity.
Virtues - CORRECT ANSWER✅✅attitudes, dispositions, or character traits that enable us to be and to
act in ways that develop this potential
CHAPTER 1 QUESTIONS AND ANSWERS
Integrity - CORRECT ANSWER✅✅An individual person acts on principle - a conviction that there is a
right way to act when faced with an ethical dilemma
Ethics - CORRECT ANSWER✅✅the principles of right and wrong that guide an individual in making
decisions
Morals - CORRECT ANSWER✅✅a person's standards of behavior or beliefs concerning what is and is not
acceptable for them to do.
Values - CORRECT ANSWER✅✅basic and fundamental beliefs that guide or motivate attitudes or
actions.
Values in Accounting: - CORRECT ANSWER✅✅independence, integrity, objectivity, professional
skepticism, and due care.
The Golden Rule in Business - CORRECT ANSWER✅✅wrong to think that separate standards of behavior
exist to guide our personal lives but that a different (lower) standard exists in business.
Laws - CORRECT ANSWER✅✅a collection of rules and regulations that come with penalties and
punishments if not followed.
Ethical Legalism - CORRECT ANSWER✅✅if an intended action is legal, it is, therefore ethical.
Useful Questions to Asked by an Ethical Individual - CORRECT ANSWER✅✅What does the law require of
me?
What do ethical standards of behavior demand of me?
How should I act to conform to both?
, Moral Point of View - CORRECT ANSWER✅✅requires that a decision maker be willing, at least
sometimes, to take an action that may not be in his/her best interest.
Moral Relativism - CORRECT ANSWER✅✅the view that moral or ethical statements, which vary from
person to person, are equally valid and no one's opinion of right and wrong is actually better than any
others.
Ethical Relativism - CORRECT ANSWER✅✅the philosophical view that what is right or wrong and good
or bad is not absolute but variable and relative, depending on the person, circumstances, or social
situation.
Relativists Points of Argument: - CORRECT ANSWER✅✅What's right for you may not be what's right for
me.
What's right for my culture won't necessarily be what's right for your culture.
No moral principles are true for all people at all times and in all places.
Cultural Relativism - CORRECT ANSWER✅✅the same action may be morally right in on society but be
morally wrong in another.
Situation Ethics - CORRECT ANSWER✅✅recognizes the existence of normative principles but question
whether they should be applied as strict directives or, instead, as guidelines that agents should use
when determining a course of ethical conduct
The Six Pillars of Character - CORRECT ANSWER✅✅trustworthiness, respect, responsibility, fairness,
caring, citizenship
Virtue Ethics - CORRECT ANSWER✅✅certain ideals, such as excellence or dedication to the common
good, toward which we should strive and which allow the full development of our humanity.
Virtues - CORRECT ANSWER✅✅attitudes, dispositions, or character traits that enable us to be and to
act in ways that develop this potential
