Accounting Ethics: Honesty, Transparency & Integrity - SS1 Accounting Past Questions and Answers - page 1
What is the importance of honesty in accounting ethics?
To ensure accurate and reliable financial reporting.
To make financial reports more complex.
To hide financial information from stakeholders.
To maximize profits for the organization.
What does transparency mean in accounting ethics?
Openness and clarity in financial reporting.
Conflicts of interest.
Openness and clarity in financial reporting
None of the above.
What is the significance of integrity in accounting ethics?
Manipulating financial information to deceive stakeholders.
Adhering to high ethical standards in accounting practices.
Conflicts of interest.
None of the above.
What are the three key ethical principles in accounting discussed in the text?
Honesty, transparency, and integrity.
Dishonesty, manipulation, and secrecy.
Efficiency, timeliness, and accuracy.
None of the above.
Why are ethical principles important in accounting?
They help accounting professionals maximize their profits.
They promote trust and confidence in financial information.
They make financial reporting more complex.
They increase conflicts of interest.
Define transparency in accounting ethics.
Transparency refers to the openness and clarity in financial reporting. It involves providing stakeholders with comprehensive and easy-to-understand financial information that helps them make informed decisions.
Why is integrity important in accounting ethics?
Integrity means adhering to high ethical standards in accounting practices. It involves being honest, truthful, and transparent in financial reporting and avoiding conflicts of interest. Accounting professionals with integrity act in the best interest of their clients or organizations and strive to maintain the highest standards of professionalism. Integrity is important because it promotes trust and confidence in financial information and contributes to the overall success and reputation of an organization.