If an Accountant Takes an Action That Is Deliberately Designed

question 81

Multiple Choice

If an accountant takes an action that is deliberately designed to improve the company's financial results,it would be considered unethical if:

• A) it deliberately misrepresents facts.
• B) the action was taken specifically for the purpose of showing higher income.
• C) the action will require a special journal entry.
• D) the action is not in the best interests of the business owners.

---

Definitions:

Cost

The amount of money required to purchase, maintain, or produce something.

Average Cost

The average amount it costs to produce one unit of goods or services, calculated by dividing the total cost of production by the total number of units produced.

Ending Inventory

The value of goods available for sale at the end of an accounting period, crucial for calculating cost of sales and net income.

Fire Screens

Protective screens placed in front of fireplaces to prevent sparks and embers from escaping into the room.