Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank

Answer:  A
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 
6) Which item is an indication of credibility under the IMA's Statement of Ethical Professional Practice?
A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
B) Refrain from using confidential information for unethical or illegal advantage.
C) Abstain from engaging in or supporting any activity that might discredit the profession.
D) Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
Answer:  D
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 
7) Ethical challenges for management accountants include:
A) whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions
B) adhering to the principles of accounting
C) whether to file a tax return this year
D) whether to accept gifts higher incentives from the company for their performance
Answer:  A
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 
8) Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?
A) Inform the Board of Directors of the existence of a potential conflict.
B) Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor.
C) Consult the attorney as to legal obligations and rights concerning the ethical conflict.
D) Follow the organization's procedures concerning resolution of such a conflict.
Answer:  D
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 

 
9) If there is an ethical conflict concerning your direct supervisor, you should first contact:
A) the local media
B) an IMA Ethics Counselor
C) an attorney
D) the board of directors
Answer:  D
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 
10) If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals not employed by the organization?
A) when there is a personal conflict
B) when your supervisor is about to be promoted
C) when there is a clear violation of the law
D) when you face injustice from your supervisor
Answer:  C
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 
11) Competence includes maintaining an appropriate level of professional expertise by continually developing knowledge and skills.
Answer:  TRUE
Explanation:  Competence includes maintaining an appropriate level of professional expertise by continually developing knowledge and skills.
Diff: 1
Objective:  7
AACSB:  Ethical understanding and reasoning
 
12) As part of the Sarbanes-Oxley Act, internal auditors are solely responsible for the fair representation of the business operations in the financial statements.
Answer:  FALSE
Explanation:  As part of the Sarbanes-Oxley Act, CEOs and CFOs must certify that the financial statements of their firms fairly represent the results of their operations.
Diff: 2
Objective:  7
AACSB:  Analytical thinking
 
13) A management accountant who is not capable of completing a project because her skills, knowledge, and abilities are lacking could be ethically in violation of the competence standard.
Answer:  TRUE
Diff: 1
Objective:  7
AACSB:  Ethical understanding and reasoning
 

 
14) As per IMA IMA's Statement of Ethical Professional Practice, integrity refers to disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations is a responsibility.
Answer:  FALSE
Explanation:  As per IMA statement of ethical professional practice, credibility refers to disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations is a responsibility.
Diff: 2
Objective:  7
AACSB:  Ethical understanding and reasoning
 
15) Performing professional duties in accordance with relevant laws, regulations, and technical standards is a competent responsibility.
Answer:  TRUE
Diff: 1
Objective:  7
AACSB:  Ethical understanding and reasoning
 
16) If a managerial accountant suspected his or her immediate superior of unethical behavior, who happens to be a chief executive officer or equivalent, the managerial accountant should request an immediate meeting with the executive committee or the audit committee.