Question 1

The IMA Statement of Ethical Professional Practice includes which of the following components?
A)Overarching principles that express members' values
B)Penalties assessed for failure to follow ethical standards
C)Types of employee misconduct
D)Procedures to identify ethical integrity

Accepted Answer

The IMA Statement of Ethical Professional Practice includes overarching principles that express members' values but does not include penalties for failure to follow ethical standards, types of employee misconduct, or procedures to identify ethical integrity.

Question 2

For each statement below, indicate the management tool being implemented.

Accepted Answer

The answer of For each statement below, indicate the management...

Question 3

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's confidentiality standard?
A)Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
B)Keep information confidential except when disclosure is authorized or legally required.
C)Inform all relevant parties regarding appropriate use of confidential information.Monitor subordinates' activities to ensure compliance.
D)Refrain from using confidential information for unethical or illegal advantage.

Accepted Answer

The duty to refrain from engaging in any conduct that would prejudice carrying out duties ethically is a general ethical obligation under the IMA Statement of Ethical Professional Practice but is not specifically related to the confidentiality standard. The confidentiality standard focuses on maintaining the confidentiality of information, not on the broader ethical conduct in carrying out duties.

Question 4

The IMA Statement of Ethical Professional Practice includes which of the following components?
A)Overarching principles of reprimand for apparent conflicts of interest
B)Interpretations of principles
C)Guidance for penalties for unethical conduct
D)Internal controls useful in establishing a code of conduct

Accepted Answer

The IMA Statement of Ethical Professional Practice includes five overarching principles, which are then followed by interpretations of each principle. There is no mention of reprimands, penalties, or internal controls in the statement.

Question 5

Two ways to develop a competitive advantage are through product differentiation and low-cost production.List three examples of managerial accounting information a company might need to monitor each of these strategies.

Accepted Answer

The answer of Two ways to develop a competitive advantage...

Question 6

Indicate which of the following statements relate to financial accounting versus managerial accounting.

Accepted Answer

The answer of Indicate which of the following statements relate...

Question 7

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

Accepted Answer

The IMA (Institute of Management Accountants) Statement of Ethical Professional Practice includes Competence, Confidentiality, Integrity, and Credibility as its standards. Objectivity is not listed as a separate standard within this specific statement.

Question 8

In applying the Standards of Ethical Professional Practice, when faced with ethical issues, you should
A)follow your organization's established policies on the resolution of such conflict.
B)hire a professional investigator to resolve the conflict.
C)contact the authorities immediately.
D)ignore the conflict to give it time to resolve itself.

Accepted Answer

Following the organization's established policies on the resolution of ethical conflicts is the best choice because it ensures that you are acting within the framework of your organization's values and principles. It also provides a clear process for addressing the issue in a fair and consistent manner. Hiring a professional investigator or ignoring the conflict are not appropriate responses, and contacting the authorities should only be considered in extreme cases where there is a potential violation of law.

Question 9

Which of the following is not a component of the IMA Statement of Ethical Professional Practice standards?
A)Reliability
B)Confidentiality
C)Integrity
D)Credibility

Accepted Answer

Reliability is not listed as one of the components of the IMA Statement of Ethical Professional Practice, but the other options (confidentiality, integrity, and credibility) are all listed.

Question 10

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's credibility standard?
A)Communicate information fairly and objectively.
B)Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.
C)Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
D)Disclose information when only good for financial performance improvements.

Accepted Answer

Disclosing information only for financial performance improvements is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's credibility standard. All other choices (A, B, C) are duties for a management accountant according to the standard.

Question 11

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's competence standard?
A)Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
B)Provide decision support information and recommendations that are accurate, clear, concise and timely.
C)Mitigate actual conflicts of interest.Regularly communicate with business associates to avoid apparent conflicts of interest.Advise all parties of any potential conflicts.
D)Perform professional duties in accordance with relevant laws, regulations, and technical standards.

Accepted Answer

Mitigating conflicts of interest and regularly communicating with business associates to avoid apparent conflicts of interest is not specifically listed as a duty of a management accountant under the competence standard, although it would fall under the ethical standard of integrity. A, B, and D are all listed as duties under the competence standard.

Question 12

Indicate which of the following users are classified as internal versus external users.

Accepted Answer

The answer of Indicate which of the following users are...

Question 13

The IMA Statement of Ethical Professional Practice includes which of the following components?
A)Articles that express members' ethical requirements
B)Standards that guide members' conduct
C)Laws that support ethical conduct
D)GAAP requirements for ethics

Accepted Answer

The IMA Statement of Ethical Professional Practice includes standards that guide members' conduct, offering a framework for ethical behavior in the management accounting profession.

Question 14

In each of the following situations, identify whether the setting is primarily financial accounting or managerial accounting.
a.Abba Company purchased a new telephone system costing $132,000 for its sales division.The new phone system will be depreciated using the straight-line method over a period of five years and has an estimated salvage value of $5,000.
b.Bandex Company has had several customers who are experiencing negative effects of the downturn in the economy.As a result, the company believes its allowance for doubtful accounts should be increased from 1% of credit sales to 1.5% of credit sales.
c.Cortez, Inc.has experienced a decline in net income over the past three years.The engineering department is considering redesigning a product to eliminate waste and inefficiency in the production process.
d.The sales manager of Decca Corporation believes one salesman is creating fictitious sales to inflate his commission.The sales manager has asked the controller for a detailed report of sales by salesman.
e.Essex, Inc.executives are meeting to analyze the company's actual results compared to budgeted amounts.

Accepted Answer

The answer of In each of the following situations, identify...

Question 15

Two ways to develop a competitive advantage is through product differentiation and low-cost production.How does a company set itself apart from competitors under each strategy?

Accepted Answer

The answer of Two ways to develop a competitive advantage...

Question 16

The IMA Statement of Ethical Professional Practice applies to
A)all accountants.
B)all CPAs.
C)all members of the IMA.
D)all those employed by a company with a code of conduct.

Accepted Answer

The IMA Statement of Ethical Professional Practice applies specifically to members of the IMA, as it is a code of conduct and ethical guidelines for those who are members of the organization. It does not necessarily apply to all accountants or CPAs, although adherence to ethical principles is expected in those professions as well. Additionally, it does not only apply to those employed by a company with a code of conduct, as it is specific to the IMA and its members.

Question 17

For each of the statements below, indicate which approach to market share growth is being used.

Accepted Answer

The answer of For each of the statements below, indicate...

Question 18

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's integrity standard?
A)Mitigate actual conflict of interest.
B)Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
C)Properly exercise authority.
D)Abstain from engaging in or supporting any activity that might discredit the profession.

Accepted Answer

Properly exercising authority is not listed as a duty under the integrity standard of the IMA Statement of Ethical Professional Practice. The other options, mitigating conflicts of interest, refraining from prejudicial conduct, and abstaining from discrediting the profession, are all listed as duties.

Question 19

Managerial accounting is designed to assist managers with four general activities: planning, controlling, evaluating and decision making.Give two examples of each type of activity for a furniture manufacturer.

Accepted Answer

The answer of Managerial accounting is designed to assist managers...

Question 20

Indicate which of the following users are classified as internal versus external users.

Accepted Answer

The answer of Indicate which of the following users are...

Quiz 1: Accounting As a Tool for Management

The IMA Statement of Ethical Professional Practice includes which of the following components?

For each statement below, indicate the management tool being implemented.

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's confidentiality standard?

The IMA Statement of Ethical Professional Practice includes which of the following components?

Two ways to develop a competitive advantage are through product differentiation and low-cost production.List three examples of managerial accounting information a company might need to monitor each of these strategies.

Indicate which of the following statements relate to financial accounting versus managerial accounting.

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

In applying the Standards of Ethical Professional Practice, when faced with ethical issues, you should

Which of the following is not a component of the IMA Statement of Ethical Professional Practice standards?

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's credibility standard?

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's competence standard?

Indicate which of the following users are classified as internal versus external users.

The IMA Statement of Ethical Professional Practice includes which of the following components?

Two ways to develop a competitive advantage is through product differentiation and low-cost production.How does a company set itself apart from competitors under each strategy?

The IMA Statement of Ethical Professional Practice applies to

For each of the statements below, indicate which approach to market share growth is being used.

Which of the following is not a duty of a management accountant under the IMA Statement of Ethical Professional Practice's integrity standard?

Managerial accounting is designed to assist managers with four general activities: planning, controlling, evaluating and decision making.Give two examples of each type of activity for a furniture manufacturer.

Indicate which of the following users are classified as internal versus external users.