Rajasthan Board RBSE Class 12 Accountancy Chapter 12 Ethics in Accountancy
RBSE Class 12 Accountancy Chapter 12 Textbook Questions
RBSE Class 12 Accountancy Chapter 12 Very Short Answer Questions
What is ethics?
Ethics is a branch of philosophy that involves systematizing defending and recommending concepts of right and wrong conduct.
How was the English word ‘Ethics’ Originated?
The English word ‘Ethics Originated from Greek work “Ethos”.
Who is related to ethics?
Ethics only related to human being in it human and society can included.
Who reached for genetics of ethics?
Two ethician’s specialist of America George and John Stewer reached for genetics for ethics.
What is the most valuable asset of an accountant?
The most valuable assets of an account is the honest reflection.
RBSE Class 12 Accountancy Chapter 12 Short Answer Type Questions
To make the policy of a decision consistent, what features should be there?
The policy of a decision consistent, main feature should be as follows:
- It is necessary to correct and proper ethically.
- It should be clean and fair for all parties.
- Lawfully and equal.
- Appropriate and acceptable.
- It should not only justice but also showing to do so.
- Honesty is necessary in ethical decision.
How Many types of code of conduct.
Types of Code of Conduct: These are distributed in three primary categories :
- Code of conduct of the company.
- Operating policies of the company.
- Professional codes of conduct.
What is the concern of professional accountants ethics?
Professional Accountant: A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest. Therefore, a professional accountant’s responsibility is not exclusively to satisfy the need of an individual client or employer. In acting in the public interest a professional accountants should observe and comply with the ethical requirements of this code. Fundamental principles of professional ethics for professional accountants provides a conceptual framework. For applying those principles the conceptual framework provides guidance on fundamental ethical principles. Professional accountants are required to apply this conceptual framework to identify threats to compliance with the fundamental principles to evaluate their significance and if such threats are other than clearly insignificant to apply safe guards to eliminate them or reduce them to an acceptable level such that compliance with the fundamental principles is not compromised.
What should we remember at the time of accounting on the base of Ethics about to goods?
We should remember that:
- Proper check the invoice at the time of Accounting of purchased goods.
- Utility of debit note which is sent to suppliers about purchase return of goods.
- On every invoice should be mentioned customer’s name, address, date, Amount etc. and Signature of Authorized officer.
- Accounting of sales return should be based on credit note.
Write a comment on the window dressing.
Window Dressing : “Window dressing is the act of manipulating the financial statements of an entity so as to show a better financial position and performance than their actual existence. It is a form of creative accounting and while the financial statements may have been prepared in accordance with proper accounting standards there is bias in the way the figures are presented”. It can be used to hide liquidity problems or to make the financial statements look better to present to lenders of finance or to encourage investors.
RBSE Class 12 Accountancy Chapter 12 Essay Type Questions
Explain the concept giving definition of ethics.
Ethics or moral philosophy is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. The term ethics derives from the ancient Greek word Ethikos, which is derived from the word Ethos (habit, “custom”). The branch of philosophy axiology comprises the sub branches of ethics and aesthetics each concerned with values.
“As a branch of philosophy, ethics investigates the questions, “What is the best way for people to live?” and “What actions are rights or wrong in particular circumstances?” In practice ethics seeks to resolve questions of human morality by defining concepts such as good and evil, right and wrong, virtue and vice justice and crime. As a field of intellectual inquiry, moral philosophy also is related to fields of moral psychology, descriptive ethics and value theory.
Richard William Paul and Linda Elder : “A set of concepts and principles that guide us in determining what behavior helps or harms sentient creatures.
Cambridge Dictionary of Philosophy : States that the word ethics is “Commonly used interchangeably with ‘morality’…… and sometimes, it is used more narrowly to mean the moral principles of a particular tradition groups or individual.”
Bernard Williams : Writes attempting to explain moral philosophy “What makes an inquiry a philosophical one is reflective generality and a style of argument that claims to be rationally persuasive and Williams describes the content of this area of inquiry as addressing the very broad question, how one should live.”
Highlight the nature of ethics.
Nature of Ethics :
- The word “ethics” is connected intrinsically with questions of correct conduct within society.
- Etymologically “ethics” comes from the Greek “ethos” meaning “character” which indicates a concern for virtuous people reliable character and proper conduct.
- Ethics asks what we should do in some circumstances or what we should do as participants in some form of activity or profession.
- Ethics is not limited to the acts of a single person.
- Ethics is also interested in the correct practices of governments, corporations, professionals and many other groups. Our basic values and the purpose of human society.
- Ethics is sometimes identified with an inflexible set of rules and self righteous moralizing. Rules say and action is either right or wrong. This over simplifies ethics.
- Ethics is not static. Ethics consists of dynamic frameworks of principles and values. Our ethical values reflect our deepest convictions and attachments.
- Ethics is the process of inventing new and better ethical responses to problems and conflicts.
- Ethics should focus on how people interpret, apply, balance and modify their principles in light on new facts, new technology, new social attitudes and changing economic and political conditions.
- Ethical thinking requires the guidance of principles but it should not be shackled to them.
Explain the various sources of ethics.
Sources of Business Ethics : Ethics in general refers to a system of good and bad moral and immoral, fair and unfair. It is a code of conduct that is supposed to align behaviors within an organisation and the social framework. But the question that remains is where and when did business ethics come into being. Primarily ethics in business is affected by three sources are culture, religion and laws of the state.
1. Religion : Religion is the oldest source of ethical inspiration. There are more than ethical inspiration. 1,00,000 religions which exist across the whole world but all of them are in agreement on the fundamental principles. Every religion gives an expression of what is wrong and right in business and other walks of life. The principal of reciprocity towards one’s fellow beings is found in all the religions. Great religions preach the necessity for an orderly social system and emphasize upon social responsibility with an objective to contribute to the general welfare. With these fundamentals every religion creates its own code of conduct.
2. Culture : Culture is the set of important understandings that members of a community share in common. It consists of a basic set of values, ideas, perceptions, preferences, concept of morality, code of conduct etc. which creates distinctiveness among human groups. When we talk about culture we typically refer to the pattern of development reflected in a soc pattern of knowledge, ideology, values laws, social norms and day-to-day rituals. Depending upon the pattern and stage of development, culture differs from society-to-society. Moreover, culture is passed from generation-to-generation. Culture facilitates the generation of commitment to something larger than one’s individual self interest.
3. Law : The legal system of any country, guide the human behavior in the society. Whatever ethics the law defines are binding on the society. The society expects the business to abide by the law. Although, it is expected that every business should be law abiding, seldom do the businesses adhere to the rules and regulations. Law breaking in business is common e.g., tax evasion, hoarding, adulteration, poor quality and high priced products, environment pollution etc.
How is Accounting done on the basis of ethics in about of cash receipts and cash payments.
The basis of ethics in about of cash receipts :
- On all vouchers related to cash receipts serial number.
- There should be mentioned. Signature of authorized authorities on all the vouchers.
- Serial no. of voucher’s with all journal entries should be shown.
- All cash receipts should be related to business.
- Entries of Bark Deposits should be mentioned on the basis of counter foil or other voucher.
The basis of ethics about cash payments :
- Entry of every payment should be mentioned on the basis of printed receipt. Which is signed by authorized authority.
- Payment should be related to Business.