Financial Accounting 9th Edition by Miller-Nobles Test bank

Learning Objective: 7 Identify the three main types of business organisation
A-Head: What are the main types of business organisation?

Multiple choice: Choose the alternative(s) that best completes the statement or answers the question.

102. An auditor has been offered a gift of golf clubs as a token of appreciation by a manager in the firm being audited. Which of the following principles in the APESB Code of Conduct would be most relevant in deciding whether to accept the gift?

1. Confidentiality
2. Professional competence and due care
3. Objectivity
4. Integrity

Answer: C
Difficulty: Moderate
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 8 Explain the role of ethics and sustainability in accounting
A-Head: How do ethics and sustainability relate to accounting?

103. The concept of sustainability in terms of business operations means that:

1. the business will continue to be profitable in the future as well as the present.
2. the business should consider the needs of society and the environment as being more important than making profits.
3. the business will keep growing in value indefinitely.
4. the business should endure losses today in order to ensure profits in the future.

Answer: A
Difficulty: Moderate
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 8 Explain the role of ethics and sustainability in accounting
A-Head: How do ethics and sustainability relate to accounting?

104. An example of an external sustainability issue is:

1. greenhouse gas emissions.
2. future profitability of the business.
3. current profitability of the business.
4. both B and C.

Answer: A
Difficulty: Moderate
AACSB: Application of Knowledge
Learning Objective: 8 Explain the role of ethics and sustainability in accounting
A-Head: How do ethics and sustainability relate to accounting?

True/False: Write 'T' if the statement is true and 'F' if the statement is false.

105. All business managers are legally bound to comply with the code of ethics developed by the professional accounting bodies.

1. True
2. False

Answer: False
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 8 Explain the role of ethics and sustainability in accounting
A-Head: How do ethics and sustainability relate to accounting?

106. Codes of ethics govern professional as well as private activities.

1. True
2. False

Answer: False
Difficulty: Basic
AACSB: Analytical Thinking, Reflective Thinking
Learning Objective: 8 Explain the role of ethics and sustainability in accounting
A-Head: How do ethics and sustainability relate to accounting?