1. When Sally is asked why she should share her toys with her sister, she responds by saying "Because my mom says I have to and if I don't I'll go to time-out." In which stage of moral development is Sally? A. Conventional Morality B. Fairness to Others C
D. Preconventional Morality
In reference to Rest's four-component Model of Morality, which component reflects an individual's willingness to place ethical values ahead of non-ethical values that relate to self-interest? A. Moral Character B. Moral Motivation C. Moral Sympathy D. Mor
B. Moral Motivation
The cognitive development approach refers to: A. The thought process followed in one's moral development B. The method of moral reasoning used in decision making C. The exercise of professional judgment in decision making D. All of these
A. The thought process followed in one's moral development
Kohlberg's model can best be described as: A. The various phases in one's moral development and related levels of moral reasoning B. A model of ethical action that is based on one's moral development C. A predictive tool to determine how a person will rea
A. The various phases in one's moral development and related levels of moral reasoning
In the "Heinz and the Drug" case described in the chapter, Heinz's actions falls into which of Kohlberg's stages? A. Stage 1 B. Stage 2 C. Stage 3 D. Stage 4
C. Stage 3
Heinz stole the drug because: A. He loved his wife B. He couldn't come up with all the money to pay for it C. He was afraid his wife would die without the drug D. All of these
D. All of these
In stage 1 of Kohlberg's model, ethical reasoning is motivated by: A. Fear of punishment B. Satisfaction of one's needs C. Following the law D. Acting based on universal ethical principles
A. Fear of punishment
In stage 3 of Kohlberg's model, ethical reasoning is motivated by: A. Satisfaction of one's needs B. Acting in the best interests of others C. Upholding the rights, values, and legal contracts of society D. Acting based on universal principles
B. Acting in the best interests of others
In stage 5 of Kohlberg's model, ethical reasoning is motivated by: A. Acting in the best interests of others B. Following the law C. Upholding the rights, values, and legal contracts of society D. Acting based on universal principles
C. Upholding the rights, values, and legal contracts of society
Individuals who reason at stage 6 incorporate ethical reasoning based on: A. The morality of law and duty to the social order B. A rational calculation of benefits and harms to society C. Universal ethical principles D. All of these
D. All of these
A client asks his accountant to ignore a mistake which overstated the accounts receivable account. The accountant decides that the accounts receivable account has to be corrected to state the correct amount. The accountant makes his decision based on his
C. Stage 4
The ethical domain in accounting and auditing refers to: A. The important constituent groups affected by accounting and auditing work B. The stages of the moral development of accountants and auditors C. The decision making process followed by accountants
A. The important constituent groups affected by accounting and auditing work
The results of studies indicate that CPAs reason primarily at: A. Stages 1 and 2 B. Stages 2 and 3 C. Stages 3 and 4 D. Stages 4 and 5
C. Stages 3 and 4
Rest's "Four Component Model of Morality" can best be described as: A. A description of the values that influence ethical decision making B. A model of the relationship between ethical action and one's level of moral development C. A model of moral judgme
B. A model of the relationship between ethical action and one's level of moral development
Assume you were assigned a term paper and decided to surf the web to identify a provider of papers for a fee. You chose what you thought was the best paper available. With respect to Rest's model of morality it can be said that: A. Your actions lack moral
A. Your actions lack moral sensitivity
The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for: A. Moral sensitivity B. Egoism C. Enlightened egoism D. Professional skepticism
D. Professional skepticism
Yvonne is preparing a tax return for Jack. Jack wants to claim his nephew as a dependent even though he does not meet the criteria. Jack says if Yvonne does not list his nephew as a dependent, he will fire her and find a new tax accountant. Yvonne refuses
C. Stage 4
James Rest's model of ethical action involves four components inherent to the ethical decision-making process. Which of the following relates to a person's moral judgment? A. Interpreting a situation as a moral dilemma B. Willingness to place ethical valu
D. Outcome of one's prescriptive reasoning
Thorne's "Integrated Model of Ethical Decision Making" can best be described as: A. A depiction of a model of moral development B. A depiction of how the Principles in the AICPA Code of Professional Conduct influences decision making C. A model of the rol
D. A model of the role of moral development and virtue in decision making
In Thorne's model of ethical decision making, the instrumental virtues relate to: A. Moral sensitivity B. Ethical reasoning C. Ethical motivation D. Ethical character
D. Ethical character
The ethical decision making model described in the chapter helps to: A. Organize the various elements of ethical reasoning and professional judgment B. Evaluate stakeholder interests using ethical reasoning C. Identify and select alternative courses of ac
D. All of these
The importance of framing the ethical issue in the decision making model is: A. Identify the stakeholders affected by intended actions B. Evaluating alternative courses of action using moral reasoning methods C. Identify the accounting issues present in a
D. Providing a perspective to apply the decision making model to specific facts of the case
Each of the following is an element of the operational issues to be considered in the decision making model except for the: A. Culture of the organization B. Method of moral reasoning C. Internal controls D. Corporate governance system
B. Method of moral reasoning
Each of the following considerations should help to evaluate alternative courses of action in the decision making model except for: A. Whether the alternatives are consistent with professional standards B. Whether the alternatives are consistent with firm
C. The stage of moral development of the decision maker
Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would violate GAAP. If Wanda reasons at stage 4 of Kohlberg's mo
C. Refuse to record the transaction as desired by the CFO
Keesha is the CEO of a publicly-owned company. She was informed by the CFO that the company's earnings were down 30 percent from the prior year due to the recession. The company's stock price has declined by 20 percent. The CFO comes up with a scheme to h
B. Stage 2
Rosie is the external auditor of Texas Two Steps, a privately-owned dance company in Texas. Rosie believes the owner of the company is skimming cash off the top. She approaches the owner who explains that the money will be replaced in the following month
D. Stage 4
Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures less than $1,000 must be expensed. Steve decides to take a $900 expenditure and separate $600 one and combine them into one $1
A. Lacking in of moral sensitivity
Role expectation or approval from others is a motive for doing right in which stage of Kohlberg's moral reasoning? A. Fairness to others B. Obedience C. Self-chosen principles D. Law and order
A. Fairness to others
At which stage of Kohlberg's view on ethical development is an individual's actions influenced by group norms? A. Stage 1 B. Stage 2 C. Stage 3 D. Stage 4
C. Stage 3
How does Gilligan evaluate the solution to Heinz's dilemma? A. Women think saving a life is more important than keeping the law. B. Men think keeping the law is more important than saving a life. C. Men tend to think in terms of justice, and women in term
C. Men tend to think in terms of justice, and women in terms of caring.
Rest's components of a moral model include all but A. Moral sensitivity B. Moral development C. Moral judgment D. Moral character
B. Moral development
Moral sensitivity can be summarized as A. Being able to think of others first B. Being able to identify the best course of action C. Being able to identify an ethical situation D. Being able to react quickly
C. Being able to identify an ethical situation
What needs to be coupled with moral motivation to act on moral judgment? A. Courage B. External pressures C. Loyalty D. Internal pressures
A. Courage
Kohlberg's model suggests that a person A. is morally developed early in life and will not change B. continues to change decision priorities with education and experiences C. may change up or down one stage upon becoming an adult D. may only go backwards
B. continues to change decision priorities with education and experiences
What are the implications of reasoning at stages 3 and 4? A. A CPA unable to apply technical accounting standards is unlikely to be influenced by others. B. A CPA is unlikely to be influenced by rules or authority. C. A CPA is unlikely to be influenced or
D. A CPA unable to apply technical accounting standards is likely to be influenced by others.
What should be the first step in decision making when faced with an ethical dilemma? A. Choose an ethical theory to follow B. Discuss with others your options C. Get the facts surrounding the problem D. Determine consequences
C. Get the facts surrounding the problem
Diem-Thi Le felt retaliated against for whistle-blowing at the DCAA. Her persistence and determination to see audits change at DCAA exemplify A. Moral Character B. Moral Motivation C. Moral Judgment D. Moral Sensitivity
A. Moral Character
The best way to characterize the efforts of Diem-Thi Le is that of a A. Disgruntled employee B. Whistleblower C. Member of the audit committee D. The director of the DCAA
B. Whistleblower
The actions of Diem-Thi Li best illustrate A. System 1 thinking B. System 2 thinking C. Moral blindness D. Pursuit of self-interests
B. System 2 thinking
Cynthia Cooper's actions in the WorldCom case can be best characterized as demonstrating: A. Persistence and independence B. Persistence and courage C. Courage and loyalty D. Persistence and loyalty
B. Persistence and courage
In the Better Boston Beans case, what is the ethical dilemma facing Cindie? A. Loyalty of co-worker versus trust of co-worker B. Trust of co-worker versus the honesty of the workplace C. Honesty of the workplace versus the privacy of an individual D. Priv
B. Trust of co-worker versus the honesty of the workplace
The ethical dilemma for Brenda in "The Tax Return" case can best be described as a: A. Conflict between loyalty to one's supervisor and doing the right thing B. Conflict between reporting an item of taxable income and ignoring it C. Lack of independence d
A. Conflict between loyalty to one's supervisor and doing the right thing
The ethical dilemma in the "Shifty Industries" case can best be described as whether to: A. Use tax depreciation for financial reporting issues B. Manipulating earnings to maximize net income C. Maximizing section 179 depreciation expense D. Minimizing de
C. Maximizing section 179 depreciation expense
In "Blues Brothers" the initial dilemma facing the internal accountant is whether to: A. Prematurely record revenue and give in to pressure from the supervisor B. Record revenue correctly and start looking for a new job C. Record revenue correctly and go
A. Prematurely record revenue and give in to pressure from the supervisor
Kevin Greenberg's actions in the "Supreme Designs" case can be said to have been: A. Selfish, in that he only thought of his own interests B. Disloyal to the company C. Unethical because he wrote checks to himself for unauthorized checks D. Undertaken wit
D. Undertaken with the intent to help out his supervisor
The "Milton Manufacturing" case illustrates: A. What can go wrong when a company sets a policy that potentially harms one area of its operations B. How the failure to exercise professional skepticism can cloud objective judgment C. The pressure that can b
A. What can go wrong when a company sets a policy that potentially harms one area of its operations
The main accounting issue in the Juggyfroot case is: A. How to account for prepaid capacity B. How to account for and report special purpose entities C. How to account for inventory declines D. How to account for investments in marketable securities
D. How to account for investments in marketable securities
In the Phar-Mor case, Pat Finn's actions reflect ethical reasoning at what stage? A. Stage 1 B. Stage 2 C. Stage 3 D. Stage 4
C. Stage 3
In the Gateway Hospital case, Troy: A. Wants to be treated the same as Kristen with respect to expense reimbursement B. Wants to be treated consistently with the company policy on expense reimbursement C.Wants to be treated differently than Kristen with r
C.Wants to be treated differently than Kristen with respect to expense reimbursement because of personal considerations