Chapter 2: Accounting, Ethics and the Business World

Multiple Choice Questions

1. Training in ethical and social accountability can aid the associates of an organisation in:
a. Providing moral legitimacy of their business and financial decisions.
b. Raise employees understanding and compliance with the organisations
vision/mission.
c. Helps them to apply moral principles and values to their daily activities.
d. All of the above.

2. Which of the following cannot be defined as an element of social accounting?

a. It quantifies the performance of the company in terms of monetary value.
b. It measures the performance of the company and its effects on the environment and
its sustainability.
c. It facilitates the implementation of labour laws.
d. It impacts the organisation’s activities on the community.

3. What are the two main reasons for organisations to be socially responsible?
a. Sustainability and responsibility.
b. Sustainability and corporate governance.
c. Accountability and responsibility.
d. Accountability and sustainability.

4. In the pyramid of corporate social responsibility, _______ responsibility is the foundation

upon which all others rest.
a. Philanthropic.
b. Legal.
c. Economic.
d. Ethical.

5. Within the accounting context, discharging accountability refers to:

a. Only preparing financial statements.
b. Publishing financial statements.
c. Applying local standards.
d. Adhering to regulations.

6. In the Accountability relationship, the accountor party is the one who,

a. Has the right to receive info.
b. Is acting as financial manager.
c. Has an obligation to discharge accountability.
d. Is member of board.

7. Being socially accountable, companies must disclose:

a. Only financial info.
 b. Non-financial info.
c. Social implications of their activities.
d. Management remuneration.

8. Within public accountability relationships, the Agent or Accountor is concerned with

a. Accountability relationship.
b. Agent theory.
c. Public funds.
d. Financial statements.

9. The code of conduct is a document that refers to:

a. Accounting standards.
b. Managerial instructions.
c. Marketing activities.
d. Values and principles

10. The code of conduct can be a very helpful tool to the management, by which they can:
a. Improve work environments.
b. Raise their payments.
c. Increase business opportunities.
d. Market their products.