Why Is Ethics in Accounting Practices Important

question 23

Multiple Choice

Why is ethics in accounting practices important?

• A) So stakeholders can seek higher return on their investment
• B) Accounting methods depend on the veracity of their application.
• C) To ensure consistency between firms
• D) To allow for uniformity in CPA standards and application
• E) To allow multinational firms to understand international investment

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Definitions:

Negotiation

The discussion aimed at reaching an agreement when two or more parties have different needs or wants.

Intermediate Level Appellate Court

A court that reviews decisions of lower courts and whose decisions may be further appealed to a higher court.

U.S. Supreme Court

The highest court in the United States, with ultimate appellate jurisdiction over all federal and state court cases dealing with issues of federal law.

State Supreme Court

The highest court within a U.S. state, which typically has the final state appellate authority over legal matters and disputes.