Deck 2: Accounting in Society

Question 1

According to Carroll (1979),which of the following was not a category for the grouping of business key responsibilities?

A) Economic.
B) Environment.
C) Discretionary.
D) Legal.

Answer 1

B

Question 2

Which of the following statements relating to ethics is true?

A) It is best to resolve ethical issues outside an organisation.
B) Insider trading is not illegal.
C) Statements of best practice are a part of providing good corporate governance.
D) There is no distinction between acting morally and acting prudently.

Answer 2

C

Question 3

Which of these is not one of the nine principles of business sustainability performance?

A) Ethics.
B) Foreign currency policy.
C) Business relationships.
D) Value of products and services.

Answer 3

B

Question 4

Which of the following elements of triple bottom line reporting

A)Environmental performance.
B)Economic performance.
C)Social performance.
D)None of the above.

Question 5

The ASX guidelines for company directors and the code of ethics for accountants both require the following:

A) consideration of the public interest.
B) minimum technical and professional standards.
C) need for transparency and accountability.
D) all of the above.

Question 6

Which of the following is a key driver of business sustainability?

A) Climate change.
B) Economic globalisation.
C) Connectivity and communication.
D) All the options are key drivers of business sustainability.

Question 7

Which of the following statements relating to ethics is not true?

A) Ethical decisions are always easy to make.
B) A high standard of ethical behaviour is in the long-term interests of an organisation.
C) Ethics is concerned with whether human actions are proper or improper.
D) Stakeholders deserve ethical behaviour from a firm's management.

Question 8

Which theory is considered to be relevant to modern corporate governance?

A) Ethical egoism.
B) Utilitarianism.
C) Kantianism.
D) Deontological.

Question 9

Kantian philosophy is grounded in the notion of duty or obligation and believes that a business that is motivated by maximising their profits,whilst doing so respectfully,is acting:

A) with dignity.
B) prudently, but not morally.
C) morally, but not prudently.
D) loyally.

Question 10

An accountant responsible for making a decision that optimises the outcome for the most number of stakeholders is said to be following which approach to decision making?

A) Deontological.
B) Kantianism.
C) Teleological.
D) Discretionary.

Question 11

Which framework is widely adopted to assist an entity's triple bottom line reporting?

A) Conceptual framework.
B) Financial framework.
C) GRI reporting framework.
D) TBL reporting framework.

Question 12

Corporate governance responsibilities for a company ultimately rest with:

A) individual managers.
B) the Australian Securities and Exchange Commission.
C) the shareholders.
D) the board of directors.

Question 13

Which of these types of behaviour would be regarded as ethical?

A) Timely disclosure of a pending lawsuit which, if found guilty, will result in the entity being required to pay a substantial amount in damages.
B) Non-disclosure of significant errors in the financial reports.
C) A company director using confidential information for personal gain.
D) Misleading advertising.

Question 14

Which of the following is not a specific legal duty and responsibility of a company director?

A) To act with due care and diligence.
B) To avoid improper use of information.
C) To act in good faith.
D) To benefit their own personal interests.

Question 15

The role of accountants in reporting and promoting sustainability includes:

A) reporting sustainability performance.
B) internal control procedures.
C) analysing of energy consumption costs.
D) all of the above.

Question 16

The concept of the triple bottom line states that an entity is responsible for the areas of:

A) economic, social and ethical performance.
B) economic, social and environmental performance.
C) economic, environmental and ethical performance.
D) social, environmental and ethical performance.

Question 17

The ASX says a company should safeguard integrity in financial reporting,(principle 4).An important element of this principle is:

A) independent verification of financial reports.
B) internal auditing of financial reports.
C) a board of directors with a majority of members being executive directors.
D) the chairperson of the board.

Question 18

The underlying concept of triple bottom line reporting is in line with:

A) shareholder value.
B) stakeholder theory.
C) legitimacy theory.
D) agency theory.

Question 19

Individuals or groups with an interest in the success of an entity are collectively

A)shareholders.
B)board of directors.
C)stakeholders.
D)employees.

Question 20

According to stewardship theory,serving on an entity's board of directors:

A) is purely for a director's self-interests.
B) is a personal wealth creation opportunity.
C) is a chance to play a role in the proper workings of the marketplace.
D) is for the benefit of one stakeholder, the entity.

Question 21

The concept that businesses are required to meet the needs of the present generation without compromising resources for future generations is known as business _______________.

Question 22

A company that discloses information about its products and services in a timely manner is following the ____________________ principle of business sustainability performance.

Question 23

One of the principles outlined by the ASX Corporate Governance Council is that companies should respect the rights of _______________.

Question 24

One of the benefits of sustainability reporting,as cited by members of the Group of 100,is the alignment of ___________ needs with management focus.

Question 25

Directors owe a legal duty to their company to act with _______ and _________.

Question 26

When faced with a moral dilemma,making an ethical decision is:

A) always easy if it will lead to a profitable outcome.
B) difficult, as the decision may be controversial.
C) unnecessary.
D) easy as there is always one simple solution to the problem.

Question 27

An entity's societal and environmental obligations to all its stakeholders are known as __________________ __________________ __________________.

Question 28

_____________________ theory suggests that entities must operate within the bounds and norms of society.

Question 29

Which of these is not an ethical principle?

A) Do unto others as you would have them do unto you.
B) The end justifies the means.
C) The greatest good for the greatest number.
D) The end does not justify the means.

Question 30

Which of the following statements concerning ethical egoism is not true?

A) It underlies the assumptions in stakeholder theory.
B) It is a teleological theory.
C) It is where the decision maker decides what is best for him/herself.
D) It is relevant to modern corporate governance.

Question 31

The theory that suggests the motive for serving on a board of directors goes beyond the perspective of pure self-interest is ________________________ theory.

Question 32

Deontological theories are concerned with an accountant's sense of duty.Which of the following philosophies is part of this group of theories?

A) Kantianism.
B) Ethical egoism.
C) Psychological egoism.
D) Utilitarianism.

Question 33

A major criticism of the financial planning industry is that:

A) financial planners are paid via commissions.
B) financial planners are not salespeople.
C) financial planners are paid from direct fees for services provided.
D) financial planners make recommendations based on their client's objective and risk profile.

Question 34

APES 110 Code of Ethics for Professional Accountants is issued by:

A) the Institute of Chartered Accountants in Australia.
B) CPA Australia.
C) Australian Securities and Investments Commission.
D) Accounting Professional & Ethical Standards Board.

Question 35

Ethically,businesses are obliged to act in the way expected of them by ____________.

Question 36

The overriding application of APES 110 Code of Ethics for Professional Accountants requires accountants to:

A) act confidently.
B) act competently.
C) act with integrity.
D) act in the public interest.

Question 37

Which of these practices is regarded as being unethical?

A) Removing a faulty product from the marketplace.
B) Prompt payment of an account payable.
C) Working at the theatre and allowing a friend to enter without a ticket.
D) All above practices are ethical.

Question 38

A factor which has not been a major reason for heightened interest in business ethics is:

A) the introduction of the GST.
B) corporate collapses.
C) the community becoming more educated and aware.
D) globalisation.

Question 39

The ______________ Act identifies specific duties,responsibilities,and potential liabilities of directors of a company.

Question 40

A commonly accepted part of business sustainability is to ensure the maximisation of _________________ value.

Question 41

The minimum acceptable standards for accountants,issued by the professional bodies,are known as the code of professional ________________.

Question 42

Not compromising your professional judgement because of bias or a conflict of interest is known as maintaining ______________.