Why Are Ethics Crucial to Accounting

question 88

Multiple Choice

Why are ethics crucial to accounting?

• A) Ethical behavior creates the most profit for the business.
• B) Ethics are a tool which help 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:

Public Choice Theorists

Economists who apply the theories and methods of economics to the analysis of political behavior.

Limited and Bundled Choices

Marketing strategies where consumers are offered packages or bundles of goods and services as a single combined product with restricted options.

Political Process

Involves the mechanisms and methods through which decisions, policies, and leaders are selected and implemented within a governing body or society.

Limited and Bundled Choices

Refers to a marketing strategy where consumers are offered packages or combinations of goods and services rather than allowing them to choose each component individually.