AACSB: Reflective Thinking AACSB: Communication AACSB: Ethics AICPA: BB Legal AICPA: FN Risk Analysis Blooms: Understand Level of Difficulty: 2 Medium Feedback: When working with ethical dilemmas, it is helpful to identify the opportunity, pressure and rationalization associated with that particular situation. 20. Discuss the importance of ethics in the accounting profession. Answer: Because the users of accounting information depend on that information for making decisions, auditors must be trustworthy and credible to render an opinion on the financial statements. The management of a business is ultimately responsible for the financial statements; therefore, the accounting personnel of the business must also conduct themselves in a highly ethical manner. Learning Objective: 02-10 Topic Area: Importance of Ethics AACSB: Communication AACSB: Ethics AICPA: BB Industry AICPA: FN Decision Making Blooms: Understand Level of Difficulty: 2 Medium Feedback: The high ethical standards required by the accounting profession state certified public accountant assumes an obligation of “a self-discipline above and beyond requirements of laws and regulations.” The AICPA Code of Professional Conduct and the IMA Standards of Ethical Conduct are among ethics regulations governing the accounting profession. Multiple Choice Questions 21. Bledsoe Company received $17,000 cash from the issue of stock on January 1, 2016. During 2016 Bledsoe earned $8,500 of revenue on account. The company collected $6,000 cash from accounts receivable and paid $5,400 cash for operating expenses. Based on this information alone, during 2016, A. Total assets increased by $20,100. B. Total assets increased by $600. C. Total assets increased by $26,100. D. Total assets did not change. Answer: A Learning Objective: 02-01 Topic Area: Accounting for accounts receivable AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Analyze Level of Difficulty:3 Hard Feedback: $17,000 (cash) + $8,500 (accounts receivable) + $6,000 (cash) - $6,000 (accounts receivable) - $5,400 (cash) = $20,100 increase
AACSB: Reflective Thinking AACSB: Communication AACSB: Ethics AICPA: BB Legal AICPA: FN Risk Analysis Blooms: Understand Level of Difficulty: 2 Medium Feedback: When working with ethical dilemmas, it is helpful to identify the opportunity, pressure and rationalization associated with that particular situation. 20. Discuss the importance of ethics in the accounting profession. Answer: Because the users of accounting information depend on that information for making decisions, auditors must be trustworthy and credible to render an opinion on the financial statements. The management of a business is ultimately responsible for the financial statements; therefore, the accounting personnel of the business must also conduct themselves in a highly ethical manner. Learning Objective: 02-10 Topic Area: Importance of Ethics AACSB: Communication AACSB: Ethics AICPA: BB Industry AICPA: FN Decision Making Blooms: Understand Level of Difficulty: 2 Medium Feedback: The high ethical standards required by the accounting profession state “a certified public accountant assumes an obligation of self-discipline above and beyond requirements of laws and regulations.” The AICPA Code of Professional Conduct and the IMA Standards of Ethical Conduct are among ethics regulations governing the accounting profession. Multiple Choice Questions 21. Bledsoe Company received $17,000 cash from the issue of stock on January 1, 2016. During 2016 Bledsoe earned $8,500 of revenue on account. The company collected $6,000 cash from accounts receivable and paid $5,400 cash for operating expenses. Based on this information alone, during 2016, A. Total assets increased by $20,100. B. Total assets increased by $600. C. Total assets increased by $26,100. D. Total assets did not change. Answer: A Learning Objective: 02-01 Topic Area: Accounting for accounts receivable AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Analyze Level of Difficulty:3 Hard Feedback: $17,000 (cash) + $8,500 (accounts receivable) + $6,000 (cash) - $6,000 (accounts receivable) - $5,400 (cash) = $20,100 increase
Test-Bank-Fundamental-Financial-Accounting-Concepts-9th-Edition-Edmonds.docx