Title: Ethical Practices in Accounting
Course: Demo 1

Q: Accurate reporting is critical to the accounting profession because many important financial and business decision are based on financial reports. As such, unethical accounting practices can result in:
- civil lawsuits
- criminal lawsuits including jail time
- professional sanctions
A: civil lawsuits; criminal lawsuits including jail time; professional sanctions

Q: Ethical behaviors:
- show the willingness and ability to distinguish between right and wrong.
- promote trustworthiness.
- are always tied to legal issues.
A: show the willingness and ability to distinguish between right and wrong.; promote trustworthiness.

Q: The purpose of this legislation is to reduce unethical corporate behavior, protect investors from the possibility of fraudulent accounting activities by corporations, and decrease the likelihood of future corporate scandals. It is the:
- Securities and Exchange Commission (SEC).
- Generally Accepted Accounting Principles (GAAP).
- Sarbanes-Oxley Act (SOX).
A: Sarbanes-Oxley Act (SOX).

Q: Which of the following items are included in The Code of Professional Ethics of the American Institute of Certified Public Accountants:
- place public trust above personal gain
- be impartial and intellectually honest
- weigh all sides of decisions
A: place public trust above personal gain; be impartial and intellectually honest

Q: Which of the following are actual repercussions of accounting fraud cited in the readings?
- an executive served jail time
- a public company was forced to write off millions of dollars in bad expense
- a major U.S. accounting firm was forced to lay-off thousands of employees
A: an executive served jail time; a public company was forced to write off millions of dollars in bad expense; a major U.S. accounting firm was forced to lay-off thousands of employees