Which of the Following Statements Concerning Rules of Conduct and Ethical

question 34

Multiple Choice

Which of the following statements concerning rules of conduct and ethical principles is FALSE?

• A)No one ethical principle can provide guidance for developing all professional rules of conduct.
• B)Since ethical behaviour is a personal choice,imposing rules of conduct places too great a restraint on the ability of the professional accountant to make good decisions.
• C)Strict reliance on rules in all situations can produce undesirable effects;ethical principles are needed to guide behaviour in such instances.
• D)Rules of conduct provide specific duties or imperatives,but ethical principles provide overall guidance on proper behaviour.

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Definitions:

Fair Value Increments

Increases in the value of an asset to reflect its current market price rather than its book value or purchase price.

Entity Method

A method of consolidation that treats all companies involved as a single, unified entity for financial reporting purposes.

Dividends Declared

A formal announcement by a company's board of directors to distribute a portion of the company’s earnings to shareholders.

Dividend Income

Income earned by investors from receiving dividends, which are distributed portions of a company's profit.