Debra and Dexter Are CPAs Specializing in Tax Planning and Preparation.At

question 32

Multiple Choice

Debra and Dexter are CPAs specializing in tax planning and preparation.At a recent professional event, Maria, a fellow CPA working for another firm, explained her belief that cheating on taxes is always wrong.Which school of ethical thought does Maria follow?

• A)ethical egoism
• B)utilitarianism
• C)deontology
• D)virtue ethics

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Definitions:

Net Income Manipulation

The practice of altering financial statements to present a more favorable picture of a company's profits.

Average Cost Formula

A method used to calculate the cost of goods sold and ending inventory by taking the total cost of goods available for sale and dividing it by the total number of units available for sale.

Cost of Goods Sold

The cost of goods sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Specific Identification

An inventory valuation method where each item in inventory is matched with a specific cost.