Question 1

Persons in the United States who provide external auditing services are designated as
A) Certified Public Accountants.
B) Certified Financial Accountants.
C) Chartered Accountants.
D) Certified Management Accountants.

Accepted Answer

In the United States, those who provide external auditing services are typically designated as Certified Public Accountants (CPAs). While the other designations listed may also be relevant to accounting professionals, they are not commonly used in the United States for those who provide external auditing services.

Question 2

Briefly discuss the relationship between cost accounting, management accounting, and cost management.

Accepted Answer

The answer of Briefly discuss the relationship between cost accounting,...

Question 3

Disclosing company information (when not legally obligated to do so) would be a violation of which part of the IMA Code of Conduct?
A) competence
B) confidentiality
C) independence
D) credibility

Accepted Answer

Disclosing company information (when not legally obligated to do so) would violate the confidentiality principle of the IMA Code of Conduct.

Question 4

Altering dates of shipping documents of next January's sales to record them as sales in the current year would be a violation of which standard of ethical conduct for management accountants?
A) competence
B) integrity
C) credibility
D) all of these

Accepted Answer

Altering dates of shipping documents to falsely record future sales in the current year violates the standards of competence (by misrepresenting financial data), integrity (by engaging in dishonest practices), and credibility (by undermining the reliability of financial reports).

Question 5

In resolving an ethical conflict, which of the following would NEVER be appropriate?
A) discussing the matter with the chief executive officer
B) discussing the matter with an external member of the board of directors
C) taking the matter to the press where there is no legal requirement
D) resigning from the position because of a conflict

Accepted Answer

Taking the matter to the press where there is no legal requirement would violate the confidentiality and privacy of the organization and potentially harm its reputation. The other options involve seeking guidance and resolution within the appropriate channels of the organization.

Question 6

Extending the close of the fiscal year beyond December 31 so that some sales of next year are included in the current year would be a violation of which standard of ethical conduct for management accountants?
A) competence
B) confidentiality
C) conformance
D) all of these

Accepted Answer

The answer of Extending the close of the fiscal year...

Question 7

Explain the relationship between the Cost Management System and the Financial Accounting System.

Accepted Answer

The answer of Explain the relationship between the Cost Management...

Question 8

The certification sponsored by the Institute of Management Accountants that emphasizes economics, finance, management, financial accounting and reporting, management reporting, and decision analysis is the
A) CPA
B) CMA
C) CIA
D) all of these.

Accepted Answer

The Certified Management Accountant (CMA) certification, sponsored by the Institute of Management Accountants, focuses on economics, finance, management, financial accounting and reporting, management reporting, and decision analysis. The Certified Public Accountant (CPA) certification focuses more on audit, tax, and accounting principles, while the Certified Internal Auditor (CIA) certification focuses on internal auditing, risk management, and governance.

Question 9

Engaging in or supporting an activity that would discredit the profession would relate to which part of the IMA Code of Conduct?
A) competence
B) independence
C) integrity
D) credibility

Accepted Answer

Engaging in or supporting an activity that would discredit the profession falls under the IMA Code of Conduct's integrity principle, which requires members to maintain honest and truthful professional conduct.

Question 10

Disclosing all information, unfavorable as well as favorable, that could influence an intended user's understanding of reports, would relate to what section of the IMA Code of Conduct?
A) competence
B) independence
C) integrity
D) credibility

Accepted Answer

Disclosing all information, both unfavorable and favorable, to ensure a user's understanding of reports aligns with the principle of credibility in the IMA (Institute of Management Accountants) Code of Conduct. This principle emphasizes the importance of providing all necessary information to support informed decision-making.

Question 11

Which of the following relates to the credibility section of the IMA Code of Conduct?
A) Prepare clear and complete reports.
B) Communicate professional limitations.
C) Avoid actual or apparent conflicts of interest.
D) Communicate information fairly and objectively.

Accepted Answer

The answer of Which of the following relates to the...

Question 12

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?
A) confidentiality
B) integrity
C) reliability
D) none of these

Accepted Answer

Accepting a savings bond from a supplier would be a violation of the integrity standard, which requires management accountants to refrain from activities that would discredit the profession or undermine public confidence in their integrity. Accepting gifts, favors, or other benefits from suppliers creates a conflict of interest and undermines the accountant's objectivity and impartiality in dealing with the supplier. The confidentiality standard requires management accountants to maintain the confidentiality of information obtained during the course of their duties, while the reliability standard requires them to provide accurate and timely information to support organizational decision-making.

Question 13

Describe the two major subsystems of the Cost Management System and briefly summarize their importance.

Accepted Answer

The answer of Describe the two major subsystems of the...

Question 14

In resolving an ethical conflict, it is inappropriate to discuss the problem with the immediate supervisor because of a violation of which standard of ethical conduct for management accountants?
A) competence
B) confidentiality
C) credibility
D) This action is not in violation of the code of conduct.

Accepted Answer

Discussing an ethical conflict with an immediate supervisor does not violate any standard of ethical conduct for management accountants. It is often encouraged as a first step in resolving ethical issues.

Question 15

When a management accountant ignores data in favor of unsupported opinion, this action would speak most directly to which part of the IMA Code of Conduct?
A) competence
B) confidentiality
C) independence
D) credibility

Accepted Answer

Ignoring data and relying solely on unsupported opinion would be a violation of the "competence" principle of the IMA Code of Conduct, which states that management accountants must remain informed and perform their duties to the best of their abilities based on relevant information, knowledge, and technology.

Question 16

The IMA has a program to recognize professional competence and educational attainment in the field of management accounting. The program leads to designation as a
A) Certified Management Accountant.
B) controller.
C) Chartered Accountant.
D) treasurer.

Accepted Answer

The program mentioned in the statement is the Certified Management Accountant (CMA) program offered by the IMA. Completion of this program results in the designation of CMA, which recognizes professional competence and educational attainment in the field of management accounting. The other choices mentioned (controller, Chartered Accountant, treasurer) are job titles or professional designations but not directly related to the specific program described in the statement.

Question 17

The standards of ethical conduct for management accountants include
A) competence and performance.
B) integrity and respect for others.
C) confidentiality, confidence, integrity, and observance.
D) competence, confidentiality, integrity, and credibility.

Accepted Answer

The Institute of Management Accountants (IMA) identifies the following four standards of ethical conduct for management accountants: competence, confidentiality, integrity, and credibility. These standards serve to guide the behavior of management accountants in their professional roles and ensure that they act responsibly and ethically. Choice A only includes two of the four standards, B includes only two of the four standards and contains one that is not listed by the IMA, and C contains all four standards but includes an additional one (confidence) not mentioned by the IMA. Therefore, D is the best choice.

Question 18

When a management accountant attends training seminars on new FASB rules, which part of the IMA Code of Conduct is being observed?
A) competence
B) confidentiality
C) integrity
D) credibility

Accepted Answer

Attending training seminars on new FASB rules indicates that the management accountant is striving to maintain competence, which is emphasized in the IMA Code of Conduct.

Question 19

An accountant certified to possess the minimal professional qualifications for an external auditor is a
A) CPA
B) CMA
C) CIA
D) all of these.

Accepted Answer

A Certified Public Accountant (CPA) is the only certification that provides the minimal professional qualifications for an external auditor. A Certified Management Accountant (CMA) and a Certified Internal Auditor (CIA) are not specifically focused on external auditing and do not necessarily possess the same level of knowledge and experience in auditing as a CPA.

Question 20

The Standards of Ethical Professional Practice of the Institute of Management Accountants addresses all of the following EXCEPT
A) competence
B) confidentiality
C) strategic cost management
D) integrity

Accepted Answer

The Standards of Ethical Professional Practice of the Institute of Management Accountants includes competence, confidentiality, and integrity as ethical standards, but does not specifically address strategic cost management.

Quiz 1: Introduction to Cost Management

Persons in the United States who provide external auditing services are designated as

Briefly discuss the relationship between cost accounting, management accounting, and cost management.

Disclosing company information (when not legally obligated to do so) would be a violation of which part of the IMA Code of Conduct?

Altering dates of shipping documents of next January's sales to record them as sales in the current year would be a violation of which standard of ethical conduct for management accountants?

In resolving an ethical conflict, which of the following would NEVER be appropriate?

Extending the close of the fiscal year beyond December 31 so that some sales of next year are included in the current year would be a violation of which standard of ethical conduct for management accountants?

Explain the relationship between the Cost Management System and the Financial Accounting System.

The certification sponsored by the Institute of Management Accountants that emphasizes economics, finance, management, financial accounting and reporting, management reporting, and decision analysis is the

Engaging in or supporting an activity that would discredit the profession would relate to which part of the IMA Code of Conduct?

Disclosing all information, unfavorable as well as favorable, that could influence an intended user's understanding of reports, would relate to what section of the IMA Code of Conduct?

Which of the following relates to the credibility section of the IMA Code of Conduct?

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?

Describe the two major subsystems of the Cost Management System and briefly summarize their importance.

In resolving an ethical conflict, it is inappropriate to discuss the problem with the immediate supervisor because of a violation of which standard of ethical conduct for management accountants?

When a management accountant ignores data in favor of unsupported opinion, this action would speak most directly to which part of the IMA Code of Conduct?

The IMA has a program to recognize professional competence and educational attainment in the field of management accounting. The program leads to designation as a

The standards of ethical conduct for management accountants include

When a management accountant attends training seminars on new FASB rules, which part of the IMA Code of Conduct is being observed?

An accountant certified to possess the minimal professional qualifications for an external auditor is a

The Standards of Ethical Professional Practice of the Institute of Management Accountants addresses all of the following EXCEPT