Why Are Ethics Crucial to Accounting

question 237

Multiple Choice

Why are ethics crucial to accounting?

• A)Ethical behavior creates the most profit for the business.
• B)Ethics are a tool that helps the accountants balance the accounting equation.
• C)For accounting information to be useful,it must be trusted and therefore the result of ethical decisions.
• D)Ethics are important to consider when applying GAAP,but do not apply to international accounting issues.
• E)Ethics are a way to compute revenues and expenses,but they do not apply to assets,liabilities,and owners' equity.

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Definitions:

Conformity

A change in behavior due to explicit or implicit social pressure.

Fundamental Attribution Error

A cognitive bias that causes people to overestimate the influence of personality or dispositional factors on an individual's behavior while underestimating the influence of situational factors.

Dispositional Causes

Factors related to an individual's personality or internal characteristics that are thought to cause their behavior.

Situational Causes

Factors or circumstances outside the individual that are attributed to affecting behavior.