Question 1

When there is an ethical conflict,the management accountant should resign if the immediate supervisor is involved with the conflict.

Accepted Answer

The answer of When there is an ethical conflict,the management...

Question 2

Although the purpose of the confidentiality standard is to encourage management accountants to remain loyal to their company,failure to disclose knowledge of internal illegal acts to outside authorities can result in the accountants being charged as an accessory to the crime.

Accepted Answer

This statement is true. While confidentiality is important to encourage loyalty to the company, it is not an excuse to participate in or cover up illegal activities. Failure to disclose knowledge of such activities can result in legal consequences for the accountant.

Question 3

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

Accepted Answer

Management accountants have a responsibility to ensure that the reports they provide are accurate and reflect the true performance of the business. Altering reports to meet specific targets undermines the integrity of the information and can lead to poor decision-making. It is unethical behavior that should be avoided.

Question 4

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Accepted Answer

The management accountant must be well-informed about laws, regulations, and technical standards related to their role to ensure compliance and make informed decisions.

Question 5

Accumulating,interpreting,and reporting financial information is important for

Accepted Answer

Accumulating, interpreting, and reporting financial information is important for virtually all types of organizations, including service-related, manufacturing, and not-for-profit organizations. Financial information is necessary for decision-making, budgeting, evaluating performance, and ensuring the financial health and sustainability of the organization.

Question 6

Which of the following types of information is not essential for a manager to run a business effectively?

Accepted Answer

The quote of the current price of the company's stock may be useful for investors or shareholders, but it is not essential information for a manager to run the daily operations of the business effectively.

Question 7

When unable to resolve an ethical conflict,the accountant should consider consulting with an attorney as to the legal obligations and rights concerning the ethical conflict.

Accepted Answer

Consulting with an attorney can provide guidance on legal obligations and rights, which can help inform ethical decision-making.

Question 8

In comparing management accounting with financial accounting,which of the following statements is true?

Accepted Answer

Financial accounting focuses on providing objective financial information to external stakeholders, such as investors and creditors, while management accounting focuses on providing subjective financial information to internal stakeholders, such as managers and employees, to aid in decision-making. Therefore, financial accounting reports are generally considered to be more objective, while management accounting reports rely more heavily on estimates and judgments.

Question 9

Management accounting

Accepted Answer

Management accounting uses various measurement units to provide useful information to managers for decision making. It is not limited to monetary measures and can use physical measures such as units produced or labor hours worked, as well as financial measures like costs and profits.

Question 10

The management accountant who is responsible only for nonfinancial reports to management does not have to remain objective,using the doctrine of fairness,when preparing all reports and analyses.

Accepted Answer

The management accountant has a responsibility to remain objective and ensure fairness in all reports and analyses, regardless of whether they are financial or nonfinancial. This is essential in providing accurate and reliable information to assist management in making informed decisions.

Question 11

Management accounting and financial accounting are similar in which of the following respects?

Accepted Answer

Both management accounting and financial accounting provide relevant and useful information to management, but they differ in their focus and audience. Financial accounting is primarily concerned with reporting to external stakeholders, such as investors and creditors, while management accounting is focused on providing information to internal management for decision-making and performance evaluation purposes.

Question 12

Which of the following is a characteristic of management accounting?

Accepted Answer

Management accounting is focused on providing information for internal users such as managers, rather than external users such as investors or creditors.

Question 13

The unit of measurement used in management accounting is

Accepted Answer

The unit of measurement used in management accounting can vary depending on the specific situation and information needed. There is no one standard unit of measurement, as management accounting involves analyzing and interpreting financial information for decision-making purposes. Therefore, any unit of measurement that provides useful information for a particular scenario can be used.

Question 14

Although management accountants should try not to engage in activities that would prejudice their ability to carry out their duties,they are not obligated to refrain from such activities after business hours,as long as these activities take place off company premises.

Accepted Answer

The answer of Although management accountants should try not to...

Question 15

Management accounting reports can

Accepted Answer

Management accounting reports can be prepared using a flexible format, incorporating both financial and nonfinancial data, and can be created for any time period. Therefore, all of the choices are correct.

Question 16

Although some management accountants strive to update their knowledge and skills,such updating is not within the realm of management accountants' ethical standards.

Accepted Answer

This statement is false. Management accountants have an ethical obligation to maintain their professional competence and to continuously update their knowledge and skills in order to provide high-quality services to their clients or organizations.

Question 17

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted unethically.

Accepted Answer

The management accountant has violated ethical principles by disclosing confidential information to a relative, which could potentially harm the financial interests of the company and its stakeholders. This could also lead to legal consequences for the accountant and damage the trust and reputation of the company.

Question 18

The management process includes all of the following stages except

Accepted Answer

The management process typically includes four stages: planning, organizing, leading, and controlling. Recording is not usually considered a separate stage in the management process, as it is considered part of the controlling stage, where managers monitor and track progress towards goals. Therefore, the correct answer is D) record.

Question 19

Practitioners of management accounting and financial management have a responsibility to communicate information fairly and objectively.

Accepted Answer

Practitioners of management accounting and financial management have a responsibility to provide information that is accurate and unbiased, and to avoid any potential conflicts of interest that may compromise their objectivity. This is essential to maintain the credibility of financial statements and reports, and to provide stakeholders with the information they need to make informed decisions.

Question 20

Management accountants working in purchasing must decline gifts from company vendors,because acceptance of a gift might influence or be perceived as influencing their performance or decision analyses.

Accepted Answer

Management accountants working in purchasing must maintain objectivity and avoid conflicts of interest. Accepting gifts from company vendors may create a perception of bias or influence in their decision-making, even if it does not actually affect their performance. Therefore, it is important for them to decline gifts to maintain their ethical standards and professional integrity.

Quiz 15: The Changing Business Environment - a Managers Perspective