Question 24 (1 point) 4. For three consecutive years, a company has changed its depreciation policy to straight line when revenues are low and then switched back to double declining balance depreciation when revenues are high. It is clear that this company's accounting methods are not in accordance with _____(1) _____ and may also represent evidence of -------(2)__----- management. Which of the following best represents blanks (1) and (2) in the previous sentence? A) (1) industry practice (2) unethical OB) (1) GAAP; (2) unethical OC) (1) AICPA rules; (2) prudent D) (1) government regulations (2) assertive Question 25 (1 point) While preparing a bank reconciliation statement for a small company, you observe that the bank credited the company's account for $3,500, but no one in the company knows why. The company's president instructs you to record the transaction as a sales transaction for the current month and to adjust the company's cash account. The president's recommendation would: OA) increase net income but would create an ethical dilemma OB) increase unearned revenues but would not create an ethical dilemma O C ) decrease net income and would create an ethical dilemma O D) increase net income but would not create an ethical dilemma Question 26 (1 point) 6. The chief operating officer (COO) of a company instructs Paul Peters to include several unmarked sealed boxes in a year-end count of physical inventories. The COO tells Paul that the contents-valued at $2,000,000will be used to manufacture an order for a special customer. Paul complied with the COO's instructions and the COO received a substantial year-end bonus that was based on a percentage of gross margin. Two months later, Paul found out that the sealed boxes were empty. Which of the following statements best describes this situation? A) cost of goods available for sale was unaffected so there is nothing unethical about the situation. B) year end inventory was fraudulently overstated but net income was understated so there is nothing unethical about the situation OC) the COO behaved unethically, and Paul Peters may have been negligent D) gross margin was unaffected by the transaction so there is nothing wrong with what the COO and John did. Question 27 (1 point) What is the name of the organization that establishes global ethics standards for professional accountants? International Federation of Accountants (IFAC) International Ethics Standards Board for Accountants (IESBA) O Public Interest Accounting Oversight Board (PCAOB) International Auditing and Assurance Standards Board (IAASB) Question 28 (1 point) What are the names of two national organizations in the USA that promote ethical guidelines for accountants? O OSCPA and ISACA The State Department and the Department of Labor The Auditor of State and the Department of Treasury The AICPA and IMA Question 29 (1 point) What are the fundamental principles of ethics? Independence, Integrity, objectivity, professional competence and due care, confidentiality, professional skepticism Honesty, respect, courage, confidentiality, impartiality, competence Integrity, objectivity, professional competence and due care, confidentiality, professional behavior Civility, impartiality, competence and due care, professional skepticism, courage, growth mindset
