RBSE Solutions 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

 

Question 1. What is ethics?
Answer: Ethics is a branch of philosophy that deals with the study of right and wrong actions. It helps us understand, defend, and suggest good and bad conduct. Understanding ethics helps individuals and organizations make responsible choices.
In simple words: Ethics is about knowing what is right and wrong behavior.

🎯 Exam Tip: When defining core concepts like ethics, clearly state its nature as a branch of philosophy and its primary focus on right and wrong conduct.

 

Question 2. How was the English word 'Ethics' Originated?
Answer: The English word 'Ethics' comes from the Greek word "Ethos". This origin highlights the deep historical roots of ethical thinking in ancient philosophy.
In simple words: The word 'Ethics' comes from an old Greek word called "Ethos".

🎯 Exam Tip: Knowing the etymology (origin) of a word can help you better understand its meaning and historical context.

 

Question 4. Who reached for genetics of ethics?
Answer: Two American ethics specialists, George and John Stewer, explored the genetics of ethics. Their work aimed to understand the biological foundations of moral behavior. This shows how ethics can be studied from different scientific angles.
In simple words: Two American experts, George and John Stewer, looked into the genetic side of ethics.

🎯 Exam Tip: When asked about specific individuals, make sure to spell their names correctly and state their contribution clearly.

 

Question 5. What is the most valuable asset of an accountant?
Answer: The most valuable asset for an accountant is their honest reflection. This means being truthful and transparent in their work. Honesty builds trust, which is key for financial professionals.
In simple words: An accountant's most important asset is being honest.

🎯 Exam Tip: Emphasize integrity and trustworthiness when discussing the qualities of professionals, especially in finance.

RBSE Class 12 Accountancy Chapter 12 Short Answer Type Questions

 

Question 1. To make the policy of a decision consistent, what features should be there?
Answer: For a decision policy to be consistent, it should have these main features:

• It needs to be correct and ethically sound.
• It must be clear and fair for all people involved.
• It should be lawful and equal for everyone.
• It should be appropriate and acceptable to those it affects.
• It should not just be about justice but also show how to put it into action.
• Honesty is crucial when making any ethical decision.

These features help ensure fairness and reliability in any policy.
In simple words: A good decision policy must be ethical, fair, legal, acceptable, practical, and honest.

🎯 Exam Tip: When listing features, use clear, concise points and make sure each point is distinct and relevant to consistency in decision-making.

 

Question 2. How Many types of code of conduct.
Answer: Codes of conduct are usually divided into three main types:

• The company's own code of conduct.
• The company's operating policies.
• Professional codes of conduct.

Each type guides behavior in different areas, ensuring employees and professionals act responsibly.
In simple words: There are three main kinds of codes of conduct: company rules, company policies, and professional rules.

🎯 Exam Tip: Clearly categorize types of conduct codes, as understanding their distinctions is fundamental in business ethics.

 

Question 4. What should we remember at the time of accounting on the base of Ethics about to goods?
Answer: When dealing with goods in accounting, based on ethics, we should remember these points:

• Properly check the invoice when accounting for purchased goods.
• Make sure to use debit notes correctly for goods that are returned to suppliers.
• Every invoice must show the customer's name, address, date, amount, and the signature of an authorized officer.
• Sales returns should always be recorded based on a credit note.

Following these steps ensures that all transactions related to goods are handled ethically and accurately.
In simple words: For ethical accounting of goods, always check invoices, use debit notes for returns, ensure invoices are complete, and record sales returns with credit notes.

🎯 Exam Tip: In accounting ethics, document verification (invoices, debit notes, credit notes) is crucial for ensuring transparency and preventing fraud.

 

Question 5. Write a comment on the window dressing.
Answer: "Window dressing" refers to changing a company's financial statements to make them look better than they actually are. This is a type of creative accounting where figures are presented in a biased way, even if they follow accounting standards. Companies might do this to hide money problems, attract lenders, or encourage investors. It's a way to manipulate perceptions rather than reflect true financial health.
In simple words: Window dressing is when a company makes its financial reports look better than they are, often to trick lenders or investors.

🎯 Exam Tip: Highlight that window dressing, while sometimes following standards, involves unethical manipulation to create a false impression of financial health.

RBSE Class 12 Accountancy Chapter 12 Essay Type Questions

 

Question 2. Highlight the nature of ethics.
Answer: The nature of ethics can be highlighted as follows:

• The word "ethics" is deeply connected to questions about correct behavior within society.
• Historically, "ethics" comes from the Greek "ethos," meaning "character," showing its concern for virtuous people and proper conduct.
• Ethics explores what actions we should take in different situations, especially in our professional lives or activities.
• Ethics is not just about what one person does; it applies to actions that affect many people or groups.
• Ethical values are based on our deepest beliefs and commitments.
• Ethics involves creating new and better responses to moral problems and disagreements.
• It focuses on how people understand, use, and change their moral rules based on new information, technology, societal views, and economic changes.
• Ethical thinking needs guiding principles but should not be strictly controlled by them.

Ethics is a dynamic field that helps guide moral conduct in various aspects of life.
In simple words: Ethics is about right behavior in society, comes from the idea of 'character', helps us decide what to do, and is not just for one person. It also changes with new facts and ideas.

🎯 Exam Tip: When describing the nature of ethics, include its origin, societal impact, and its adaptable role in guiding conduct.

 

Question 3. Explain the various sources of ethics.
Answer: Business ethics generally refers to a system of good and bad, fair and unfair conduct. It is a set of rules meant to align behaviors within an organization and society. Primarily, business ethics is shaped by three main sources:

1. **Religion:** Religion is one of the oldest sources of moral inspiration. Many religions worldwide agree on fundamental principles of right and wrong, and what is fair in business and life. The idea of treating others as you want to be treated is common across religions. Major religions teach about social order and caring for the general welfare, which helps form their codes of conduct.

2. **Culture:** Culture represents the shared understandings within a community. It includes common values, ideas, beliefs, and moral concepts that make groups unique. Culture influences our knowledge, values, and social norms. It varies from society to society and is passed down through generations. Culture helps people feel committed to something bigger than their individual interests.

3. **Law:** The legal system of any country guides human behavior. The ethics defined by law are binding on society. Society expects businesses to follow these laws. While businesses are expected to obey laws, they don't always fully stick to all the rules.
These three sources provide a framework for ethical decision-making in business and daily life.
In simple words: Business ethics comes from three main places: religion (which teaches right and wrong), culture (shared values and ideas), and laws (rules set by the government).

🎯 Exam Tip: When explaining sources of ethics, clearly define each source (Religion, Culture, Law) and briefly describe how it influences ethical behavior in business.