Question 1

Which of the following is not a standard of the IMA statement of ethical professional practice?
A)Competence
B)Integrity
C)Credibility
D)Independence

Accepted Answer

Independence is not listed as a standard in the IMA (Institute of Management Accountants) Statement of Ethical Professional Practice. The standards listed include Competence, Confidentiality, Integrity, and Credibility.

Question 2

Ethical behavior is
A)always doing what benefits yourself regardless of the consequences to others affected by your decision.
B)always choosing the behavior that will harm the least number of stakeholders.
C)knowing right from wrong and conducting yourself accordingly so that your decisions are consistent with your own value system and the values of those affected by your decisions.
D)knowing right from wrong and conducting yourself accordingly so that your decisions are made to benefit others affected by your decisions rather than yourself.

Accepted Answer

Ethical behavior is based on knowing right from wrong and making decisions that are consistent with one's own values as well as the values of others affected by those decisions. It is not solely focused on benefiting oneself or minimizing harm to stakeholders, although these can be factors to consider.

Question 3

Which of the following is not a test of an ethical business decision as suggested by the Institute of Business Ethics?
A)Would I want others to do to me what I am doing to them?
B)Do I mind others knowing what I have done?
C)Who does my decision affect or hurt?
D)Would my decision be considered fair by those affected?

Accepted Answer

The answer of Which of the following is not a...

Question 4

Under the Sarbanes-Oxley Act, which of the following is a requirement of the corporate code of ethics?
A)Cannot be published in the annual report or on the corporate website, or provided at no charge upon request
B)Must disclose specific instances in which these codes have been waived for a particular individual
C)Must disclose all breaches to the code in the annual report
D)Must disclose all changes to the code

Accepted Answer

The answer of Under the Sarbanes-Oxley Act, which of the...

Question 5

Which of the following statements related to ethical behavior is not a correct statement?
A)The spirit of the law is more important than the letter of the law.
B)Moral values and codes are more important than rules and policies.
C)A person is considered to uphold ethical business practices as long as he or she complies with the law.
D)Ethical business behavior is not solely compliance with the law.

Accepted Answer

Compliance with the law is just the baseline for ethical behavior; it is not enough to ensure ethical business practices. Ethical behavior extends beyond legal compliance and includes adhering to moral values and codes that promote fairness, integrity, and respect for others.

Question 6

The Sarbanes-Oxley Act requires that all publicly traded companies disclose whether certain executives are subject to a corporate code of ethics.Which of the following executive positions need not be disclosed?
A)Principal executive officer
B)Principal marketing officer
C)Principal financial officer
D)Principal accounting officer

Accepted Answer

The Sarbanes-Oxley Act requires disclosure of whether the principal executive officer, principal financial officer, and principal accounting officer are subject to a corporate code of ethics. The principal marketing officer is not mentioned in this requirement, therefore, their position need not be disclosed.

Question 7

Which of the following is least likely to be in a company's code of ethics?
A)Transparency of information
B)Commitment to the environment
C)Maximum amount of bonuses to be paid to executives
D)Discrimination

Accepted Answer

The least likely item to be included in a company's code of ethics is the maximum amount of bonuses to be paid to executives. While transparency of information, commitment to the environment, and non-discrimination are common inclusions in a code of ethics, setting limits on executive bonuses is generally a matter of company policy or governance rather than ethical considerations.

Question 8

Which of the following is a not a consequence of unethical behavior?
A)It can lead to illegal activity.
B)It can lead to the destruction of the firm.
C)It can lead to inferior financial performance.
D)It can lead to improved financial performance.

Accepted Answer

Unethical behavior may bring in quick or short term profits, which may give an impression of improved financial performance. However, in the long run, it can lead to negative consequences such as loss of reputation, loss of customers, and loss of employees, which can ultimately affect the financial performance of the firm negatively. Therefore, unethical behavior cannot lead to improved financial performance in the long run.

Question 9

Which of the following is least likely to be in a company's code of ethics?
A)Profit margin expected
B)Transparency of information
C)Political activity
D)Commitment to the environment

Accepted Answer

A company's code of ethics is unlikely to include a specific profit margin expectation as this is a financial goal that may fluctuate depending on various factors such as market conditions, competition, and economic trends. Instead, a company's ethical code is likely to focus on principles and values that guide its behavior, such as transparency, honesty, responsibility, and respect for stakeholders, employees, and the community. These principles may also include commitments to environmental sustainability, social responsibility, and corporate citizenship, as well as prohibitions against unethical practices, such as corruption, discrimination, harassment, or conflicts of interest. Political activity may also be addressed, such as guidelines for lobbying, campaign contributions, or transparency in political engagement.

Question 10

Ethical business behavior
A)is more than compliance with the law.
B)suggests that the spirit of the law is not as important than the letter of the law.
C)suggests that moral values and codes are less important than rules and policies.
D)occurs with compliance with the law.

Accepted Answer

Ethical business behavior goes beyond simply following the law. It involves taking into account moral values and principles, considering the impact of decisions on stakeholders, and making choices that align with ethical standards. While compliance with the law is important, it is only one aspect of ethical behavior.

Question 11

The Sarbanes-Oxley Act requires that all publicly traded companies disclose whether certain executives are subject to a corporate code of ethics.Which of the following executive position need not be disclosed?
A)Principal production officer
B)Principal financial officer
C)Principal accounting officer
D)Principal executive officer

Accepted Answer

The Sarbanes-Oxley Act requires disclosure of whether the principal executive officer, principal financial officer, principal accounting officer, or any other person performing similar functions are subject to a corporate code of ethics. The principal production officer position is not mentioned in this list and therefore need not be disclosed.

Question 12

Which of the following is a type of unethical behavior employees might observe?
A)Putting one's own interest in line with the organization's interest
B)Misreporting of hours worked
C)Posting a journal entry twice in error
D)Misreporting of hours worked and lying to employees

Accepted Answer

The answer of Which of the following is a type...

Question 13

Which of the following is not a type of unethical behavior employees might observe?
A)Requiring employees to sign an acknowledgement that they understand and will adhere to the corporate code of conduct
B)Putting one's own interest ahead of the organization's interest
C)Misreporting of hours worked
D)Lying to employees

Accepted Answer

Requiring employees to sign an acknowledgement that they understand and will adhere to the corporate code of conduct is not a type of unethical behavior. It is actually a measure taken by organizations to ensure that their employees understand and follow the ethical standards of the company.

Question 14

A key component of a positive ethical environment is
A)legal requirements.
B)regulatory requirements.
C)industry requirement.
D)tone at the top, or management's commitment to ethical behavior.

Accepted Answer

While legal, regulatory, and industry requirements can provide a framework for ethical behavior, the tone at the top and management's commitment to ethical behavior is necessary for creating a positive ethical environment. This sets the standard for acceptable behavior and creates a culture where ethical decision-making is valued and rewarded.

Question 15

Which of the following is not a type of unethical behavior employees might observe?
A)Abusive or intimidating behavior
B)Lying to employees
C)Misreporting of hours worked
D)Requiring employees to sign an acknowledgement that they must adhere to the corporate code of conduct.

Accepted Answer

Requiring employees to sign an acknowledgement that they must adhere to the corporate code of conduct is not an unethical behavior, but rather a practice to encourage ethical behavior. A, B, and C are all examples of unethical behavior that employees might observe.

Question 16

Under the Sarbanes-Oxley Act, which of the following related to the corporate code of ethics is not required?
A)Must be published in the annual report or on the corporate website or provided at no charge upon request
B)Must disclose the likelihood of a breach of the code based on the industry and structure of the corporation
C)Must disclose all instances in which these codes have been waived for a particular individual
D)Must disclose all changes to the code

Accepted Answer

The Sarbanes-Oxley Act requires the corporate code of ethics to be published in the annual report or on the corporate website or provided at no charge upon request (A), to disclose instances in which the code has been waived for a particular individual (C), and to disclose all changes to the code (D). However, it does not require the disclosure of the likelihood of a breach of the code based on the industry and structure of the corporation (B).

Question 17

The goal of an ERP system is to
A)reduce waste and inefficiency in the production process.
B)integrate all data from the company's many business processes into a single information system.
C)establish the direction in which an organization wishes to go.
D)monitor day-to-day operations to ensure that processes are operating as expected.

Accepted Answer

The goal of an ERP system is to integrate all data from the company's many business processes into a single information system. This allows for better communication and coordination across different departments, leading to increased efficiency and productivity.

Question 18

Which of the following is least likely to be in a company's code of ethics?
A)Access to information
B)Projected percentage of employees who act unethically
C)Development and fundraising
D)Clarity of information

Accepted Answer

A company's code of ethics typically focuses on outlining expected behaviors and values, as well as guidelines for decision-making and ethical conduct. Projected percentage of employees who act unethically is not a typical component of a code of ethics.

Question 19

According to a 2018 Global Business Ethics Survey, what percentage of employers had a written code of conduct?
A)26%, up from 17% in 1994
B)47%, up from 35% in 1994
C)78%, up from 67% in 1994
D)82%, up from 35% in 1994

Accepted Answer

According to the 2018 Global Business Ethics Survey, 78% of employers had a written code of conduct, up from 67% in 1994.

Question 20

The leading professional organization for managerial accountants is
A)The American Institute of Managerial Accountants.
B)The Society of American Management Accountants.
C)The Institute of Management Accountants.
D)The National Society of Management Accountants.

Accepted Answer

The Institute of Management Accountants (IMA) is the leading professional organization for managerial accountants. It has more than 100,000 members worldwide and provides education, certification, and networking opportunities for its members. The other answer choices are not actual professional organizations for managerial accountants.

Quiz 1: Accounting As a Tool for Management

Which of the following is not a standard of the IMA statement of ethical professional practice?

Ethical behavior is

Which of the following is not a test of an ethical business decision as suggested by the Institute of Business Ethics?

Under the Sarbanes-Oxley Act, which of the following is a requirement of the corporate code of ethics?

Which of the following statements related to ethical behavior is not a correct statement?

The Sarbanes-Oxley Act requires that all publicly traded companies disclose whether certain executives are subject to a corporate code of ethics.Which of the following executive positions need not be disclosed?

Which of the following is least likely to be in a company's code of ethics?

Which of the following is a not a consequence of unethical behavior?

Which of the following is least likely to be in a company's code of ethics?

Ethical business behavior

The Sarbanes-Oxley Act requires that all publicly traded companies disclose whether certain executives are subject to a corporate code of ethics.Which of the following executive position need not be disclosed?

Which of the following is a type of unethical behavior employees might observe?

Which of the following is not a type of unethical behavior employees might observe?

A key component of a positive ethical environment is

Which of the following is not a type of unethical behavior employees might observe?

Under the Sarbanes-Oxley Act, which of the following related to the corporate code of ethics is not required?

The goal of an ERP system is to

Which of the following is least likely to be in a company's code of ethics?

According to a 2018 Global Business Ethics Survey, what percentage of employers had a written code of conduct?

The leading professional organization for managerial accountants is