Question 1

In using the GVV framework,questions to pose for dealing with the opposing points of view include all of the following except:

Accepted Answer

A) What is the way to appeal all parties? 
B) What is at stake for the key parties? 
C) What is your most powerful and persuasive response you need to address? 
D) What levers can you to influence others?

Question 2

Cognitive dissonance creates a problem that can be described as:

Accepted Answer

A) Inconsistency between thoughts and beliefs and our intended actions 
B) Consistency between thoughts and beliefs and our intended actions 
C) Reducing the importance of the beliefs and attitudes on our actions 
D) Acquiring new information that outweighs the dissonant beliefs

Question 3

How does Gilligan evaluate the solution to Heinz's dilemma?

Accepted Answer

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 terms of caring. 
D) Men misunderstand and women understand.

Question 4

At which stage of moral development are most accountants and auditors with respect to their decision making? What factors are responsible for their being at that stage? Given the stage of moral development you think you are at,how does this relate to the stage of moral reasoning of most accountants and auditors? What conflicts might exist for you in the workplace?

Accepted Answer

The answer of At which stage of moral development are...

Question 5

The "Milton Manufacturing" case illustrates:

Accepted Answer

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 be placed on accountants by top management. 
D) What can go wrong when fraudulent accounting is dictated by top management.

Question 6

The cognitive development approach refers to:

Accepted Answer

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) The approach to giving voice to one's values

Question 7

Thorne's "Integrated Model of Ethical Decision Making" can best be described as:

Accepted Answer

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 role of virtue in decision making 
D) A model of the role of moral development and virtue in decision making

Question 8

Kohlberg's model can best be described as:

Accepted Answer

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 reason ethically based on one's moral development 
D) A model of age-specific levels of moral reasoning

Question 9

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 because it is illegal to claim a dependent that does not meet the qualifications.Based on Yvonne's decision,she is likely reasoning at which stage of Kohlberg's moral development model?

Accepted Answer

A) Stage 2 
B) Stage 3 
C) Stage 4 
D) Stage 5

Question 10

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?

Accepted Answer

A) Moral Character 
B) Moral Motivation 
C) Moral Sympathy 
D) Moral Judgment

Question 11

In Thorne's model of ethical decision making,the instrumental virtues relate to:

Accepted Answer

A) Moral sensitivity 
B) Ethical reasoning 
C) Ethical motivation 
D) Ethical character

Question 12

Which of the following is NOT one of the levers Larry Davis might use to convince Paul Jones about the rightness of his point of view in the Ace Manufacturing case discussed in the chapter?

Accepted Answer

A) Davis can ask Paul Jones for supporting documentation to back up the coding of expenses to different accounts 
B) Davis can try to convince Paul that his actions are harmful to the company and potentially very embarrassing for his dad 
C) Davis can threaten to go to all the owners if Paul doesn't admit the mistake and take corrective action 
D) Davis can threaten to go to the SEC to protect shareholder interests if Paul agrees to pay back the amounts taken out of the company and correct the accounting

Question 13

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?

Accepted Answer

A) Interpreting a situation as a moral dilemma 
B) Willingness to place ethical values ahead of non-ethical values 
C) Intention to act ethically aligning to his values 
D) Outcome of one's prescriptive reasoning

Question 14

As a professional working for a large electronics firm,Stan found himself riding a roller coaster of concern about lay-offs.Every few years,top management slashed jobs as work slacked off - only to hire again when things were looking up.So when Stan and his team members noticed that the executives were again meeting behind closed doors,they suspected the worst.
Stan's boss revealed to Stan that Stan's team member Jim was slated to lose his job.However,it was made plain that Stan was to keep that information confidential.
Not long after that conversation,Jim approached Stan and asked whether he could confirm the rumor that he would be laid off.
Stan has decided to tell Jim but first wants to convince management of the rightness of his action.What might he say to who and why? What are the reasons and rationalizations he may have to counter in making his argument?

Accepted Answer

The answer of As a professional working for a large...

Question 15

Gabby has just left a meeting with the partner in charge of an audit engagement and was told to ignore the typical year-end accrual entries because earnings are below financial analysts' earnings expectations.Gabby knows this is wrong and wants to act on her values but she does not want to lose her job.What is the best thing for Gabby to do in this situation if she chooses to voice her values?

Accepted Answer

A) Quit the firm 
B) Speak with the managing partner of the firm 
C) Inform the SEC of the difference 
D) All of the above

Question 16

The philosophical methods of moral reasoning suggest that once we have ascertained the facts,we should ask ourselves certain questions when trying to resolve a moral issue.Which of the following is NOT one of those questions?

Accepted Answer

A) Which course of action maximizes my net benefits? 
B) Which course of action develops moral virtues? 
C) Which course of action advances the common good? 
D) What benefits and what harms will each course of action produce and which alternative will lead to the best overall consequences?

Question 17

In the "Heinz and the Drug" case described in the chapter,if Heinz was reasoning at stage 5 he might decide to steal the drug based on which of the following reasoning?

Accepted Answer

A) Heinz should steal the medicine,because he will be much happier if he saves his wife,even if he will have to serve a prison sentence. 
B) Heinz should steal the medicine,because his wife expects it. 
C) Heinz should steal the medicine,because the law prohibits exceptions. 
D) Heinz should steal the medicine,because everyone has a right to live,regardless of the law.

Question 18

Assume your supervisor has reduced the number of hours you charged to the client because it was over budget.You will not be paid for those hours.What would you do and why? Use ethical reasoning.

Accepted Answer

The answer of Assume your supervisor has reduced the number...

Question 19

In the Doing Good by Being Good case discussed in the chapter,Becca needs to counter Matt's reasons and rationalizations for which of the following actions?

Accepted Answer

A) Using donated funds to the Accounting Club for personal purposes. 
B) Taking money from the Accounting Club's operating account without approval. 
C) Taking money from the Accounting Club's petty cash fund without approval. 
D) Using donated funds to the Accounting Club to help victims of a hurricane.

Question 20

The ethical dilemma for Brenda in "The Tax Return" case can best be described as a:

Accepted Answer

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 due to ties to the client entity 
D) Lack of due care in not spotting improper tax accounting

Exam 2: Cognitive Processes and Ethical Decision Making in Accounting