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The ethical factor recognizes that while certain actions might be both economically profitable and they may still not be right. True 2. Internal controls help to prevent fraud. False 3. Proper segregation of duties increases the chances for fraud and promotes the accuracy Of accounting records. (Multiple Choice) A 4. Generally, three factors influence business and accounting decisions A. Operating, investing, and financing activities B. Assets, liabilities, and equity C. Economic, legal, and ethical D. Revenues, expenses, and dividends D 5.
Which Of the following questions should be asked in making an ethical analysis? A. Which option results in treating others as would want to be treated? B. Which options are the most honest, open, and truthful? C. Which options create the greatest good for the greatest number of stakeholders? D. All of the above questions should be considered. C 6. The decision framework for making ethical judgments does NOT consider the following question? A. C. D. What is the issue? What are the alternatives? What alternative maximizes profit? Who are the stakeholders? D 7. The two most common types of fraud impacting financial tenements are: A. Redundant financial reporting and e-commerce fraud B. Misappropriation of assets and embezzlement C. Fraudulent financial reporting and misappropriation of assets D. Cooking the books and fraudulent financial reporting 8. An intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party is: A. Collusion 8. Fraud C. Pushing D. Lapping Accounting Principles I – Ethics Quiz – Page 2 A 9. The three elements that are present in almost all cases of fraud are collectively known as the: 8. B. Fraud triangle merest system fraud system fraud rationalization C 10.
The three main components of the fraud triangle are: rationalization, opportunity and greed opportunity, motive and lack of ethics motive, opportunity and rationalization none of the above D 11. Fraud is the ultimate unethical act in business because: A. The perpetrators usually do so for their own short-term economic gain at the expense of others. B. Fraud is illegal C. Fraud violates the rights Of many for the temporary betterment Of a few D. Of all of the above C 12. Which of the following is the most accurate statement regards Eng ethics as applied to decision making in accounting? A.
Ethics has no place in accounting, since accounting deals purely with numbers. B. It is impossible to learn ethical decision making since it is just something you decide to do or not to do. C. Ethics involves making difficult choices under pressure, and should be kept in mind in making every decision, including those involving accounting. D. Ethics is becoming less and less important as a field of study in business. A 13. Which of the following is an example of poor internal control? A. The mailbox clerk records daily cash receipts in the journal. B. Rotate employees through various jobs.
C. The accounting department compares goods received with the related purchase order. D. Employees must take vacations 14. Each Of the following is an example of a control procedure, except A. Sound personnel procedures B. A sound marketing plan C. Separation of duties D. Limited access to assets Accounting Principles I -? Ethics Quiz – Page 3 C 15. Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control? Competent and reliable personnel Assignment of responsibility Monitoring of controls Separation of duties D 16.
All of the following are objectives of internal control except to ensure accurate and reliable accounting records to comply with legal requirements to safeguard assets to maximize net income Match each internal control concept below with its term by selecting the appropriate letter in the space provided. Not all letters are used. Competent personnel Encryption Safeguarding assets Fidelity bond . Collusion G. If aerials H. Us pervasion l. External audits 17. This procedure limits access to sensitive data. G E_ 18. This type of insurance policy covers losses due to employee theft.