Question 1

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

Accepted Answer

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

Question 2

The best way to characterize the efforts of Diem-Thi Le is that of a

Accepted Answer

A)  Disgruntled employee 
B)  Whistleblower 
C)  Member of the audit committee 
D)  The director of the DCAA

Question 3

Diem-Thi Le took actions at the DCAA that jeopardized her position at the agency. What motivated her to act as she did in the case?

Accepted Answer

The answer of Diem-Thi Le took actions at the DCAA...

Question 4

The results of studies indicate that CPAs reason primarily at:

Accepted Answer

A)  Stages 1 and 2 
B)  Stages 2 and 3 
C)  Stages 3 and 4 
D)  Stages 4 and 5

Question 5

Kevin Greenberg's actions in the "Supreme Designs" case can be said to have been:

Accepted Answer

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 with the intent to help out his supervisor

Question 6

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 in which stage of Kohlberg's moral development model?

Accepted Answer

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

Question 7

Describe the components and objectives of each step in the integrated ethical decision making process explained in the chapter.

Accepted Answer

The answer of Describe the components and objectives of each...

Question 8

Role expectation or approval from others is a motive for doing right in which stage of Kohlberg's moral reasoning?

Accepted Answer

A)  Fairness to others 
B)  Obedience 
C)  Self-chosen principles 
D)  Law and order

Question 9

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)  All of these

Question 10

Diem-Thi Le felt retaliated against for whistle-blowing at the DCAA. Her persistence and determination to see audits change at DCAA exemplify

Accepted Answer

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

Question 11

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 12

In stage 5 of Kohlberg's model, ethical reasoning is motivated by:

Accepted Answer

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

Question 13

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)  All of these

Question 14

The main accounting issue in the Juggyfroot case is:

Accepted Answer

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

Question 15

In the Gateway Hospital case, Troy:

Accepted Answer

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 respect to expense reimbursement because of personal considerations 
D)  Believes the company's reimbursement policy is fair
Essay Questions

Question 16

The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for:

Accepted Answer

A)  Moral sensitivity 
B)  Egoism 
C)  Enlightened egoism 
D)  Professional skepticism

Question 17

Heinz stole the drug because:

Accepted Answer

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

Question 18

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 duty to society, respect for authority, and maintaining the social order. Which stage of Kohlberg' Stages of Moral Development is the accounting reasoning?

Accepted Answer

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

Question 19

The ethical dilemma in the "Shifty Industries" case can best be described as whether to:

Accepted Answer

A)  Use tax depreciation for financial reporting issues 
B)  Manipulating earnings to maximize net income 
C)  Maximizing section 179 depreciation expense 
D)  Minimizing depreciation expense to maximize net income

Question 20

Individuals who reason at stage 6 incorporate ethical reasoning based on:

Accepted Answer

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

Exam 2: Cognitive Processes and Ethical Decision Making in Accounting

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

The best way to characterize the efforts of Diem-Thi Le is that of a

Diem-Thi Le took actions at the DCAA that jeopardized her position at the agency. What motivated her to act as she did in the case?

The results of studies indicate that CPAs reason primarily at:

Kevin Greenberg's actions in the "Supreme Designs" case can be said to have been:

Describe the components and objectives of each step in the integrated ethical decision making process explained in the chapter.

Role expectation or approval from others is a motive for doing right in which stage of Kohlberg's moral reasoning?

The "Milton Manufacturing" case illustrates:

Diem-Thi Le felt retaliated against for whistle-blowing at the DCAA. Her persistence and determination to see audits change at DCAA exemplify

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

In stage 5 of Kohlberg's model, ethical reasoning is motivated by:

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

The main accounting issue in the Juggyfroot case is:

In the Gateway Hospital case, Troy:

The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for:

Heinz stole the drug because:

The ethical dilemma in the "Shifty Industries" case can best be described as whether to:

Individuals who reason at stage 6 incorporate ethical reasoning based on: