Question 1

An accountant who does not understand how "accrual accounting" works has failed which standard?

Accepted Answer

Competence is the ability and knowledge to perform professional services. As an accountant, understanding accrual accounting is essential to perform their duties competently.

Question 2

Just because a behavior is legal does not always make it ethical.

Accepted Answer

Legal standards are often decided by government bodies and can vary across different countries and jurisdictions. On the other hand, ethical standards are based on universal principles of fairness, respect, and compassion towards others. Just because a behavior is legal does not necessarily mean it aligns with these moral principles and values. For example, exploiting loopholes in tax laws to avoid paying taxes may be legal but is not considered ethical by many people.

Question 3

You take printer paper home from work for personal use.You have violated which ethical standard?

Accepted Answer

Taking printer paper home from work for personal use violates the ethical standard of integrity, which requires honesty and adherence to moral principles in all professional and personal activities. Taking office supplies for personal use is a form of theft and misappropriation of company resources, which can damage the reputation and trustworthiness of the individual and the organization.

Question 4

You tell your sister that the company you work for is going to report higher than expected earnings.What ethical standard is being violated?

Accepted Answer

Sharing confidential information about a company's financial performance violates the ethical standard of confidentiality.

Question 5

When faced with an ethical dilemma,the Society of Management Accountants suggests that the first thing management accountants should do is call the Society's ethics hotline.

Accepted Answer

While the Society of Management Accountants does offer an ethics hotline as a resource, it is not the first step recommended in addressing an ethical dilemma. Instead, management accountants are advised to first identify the problem, gather relevant facts, consult with colleagues and superiors, consider alternative courses of action, and then make a decision while adhering to ethical standards and principles. The ethics hotline may be used as a last resort if other options have been exhausted or if there is a need for additional guidance.

Question 6

What is the name of the professional association for managerial accountants?

Accepted Answer

The professional association for managerial accountants is the Society of Management Accountants. The other options listed (Association of Management Accountants, Society of Professional Accountants, and Professional Accountants Association) do not exist as actual professional associations.

Question 7

The standards of the Society of Management Accountants Code of Professional Ethics include which of the following?

Accepted Answer

The answer of The standards of the Society of Management...

Question 8

The Society of Management Accountants issues what certification?

Accepted Answer

The Society of Management Accountants (SMA) issues the Certified Management Accountant (CMA) certification, which is a globally recognized professional designation for management accountants. It signifies an individual's expertise in financial planning and analysis, strategic management, and performance management. The other options listed are certifications issued by other professional organizations - CPA (Certified Public Accountant) by the American Institute of Certified Public Accountants, CISA (Certified Information Systems Auditor) by ISACA, and CFP (Certified Financial Planner) by the Certified Financial Planner Board of Standards.

Question 9

Taking on a responsibility you know can be better completed by someone else would violate the ethical conduct standard of

Accepted Answer

The ethical conduct standard of competency requires professionals to only take on responsibilities that they are qualified and capable of completing. Knowing that someone else could perform the task better is a violation of this standard.

Question 10

Performing duties in accordance with relevant laws,regulations,and technical standards make up which SMA professional ethics standard?

Accepted Answer

The professional ethics standard of Competence requires that an SMA performs their duties in accordance with relevant laws, regulations, and technical standards, ensuring they have the necessary knowledge and skills to carry out their responsibilities.

Question 11

The Society of Management Accountants ethical principles include: responsibility,
loyalty,honour and independence.

Accepted Answer

The Society of Management Accountants ethical principles include responsibility, loyalty, honour, and independence.

Question 12

You "pad" your expenses on a company sponsored conference.You are in violation of what ethical standard?

Accepted Answer

Padding expenses involves falsifying information to increase the amount of reimbursement that an individual receives, and is a violation of the ethical standard of integrity.

Question 13

Attending class to maintain professional knowledge is an example of which ethical standard?

Accepted Answer

Attending class to maintain professional knowledge reflects the ethical standard of Competence, which requires professionals to maintain their skills and knowledge to provide high-quality services to clients.

Question 14

A company ships out pre-ordered merchandise the last week of December,instead of in mid-January as originally scheduled,to ensure a profit for the year.This action could be seen as a violation of what ethical standard?

Accepted Answer

This action could be seen as a violation of the ethical standard of integrity, which requires a company to be honest and transparent in its business practices. By shipping out pre-ordered merchandise earlier than scheduled to ensure a profit for the year, the company is not being honest about its intentions and is potentially deceiving its customers.

Question 15

Communicating information fairly and objectively represents what ethical standard?

Accepted Answer

Communicating information fairly and objectively represents the ethical standard of credibility, which refers to being honest and trustworthy in one's communications. Competence relates to having the necessary knowledge and skills to perform a task, confidentiality involves keeping private information confidential, and integrity refers to adhering to moral and ethical principles.

Question 16

Refusing gifts or favors that would influence actions is an example of which ethical standard?

Accepted Answer

Refusing gifts or favors that would influence actions is an example of the ethical standard of independence, which ensures that decisions and actions are not unduly influenced by external factors such as personal interests or relationships.

Question 17

Not disclosing confidential information is an example of which ethical standard?

Accepted Answer

Confidentiality is the ethical standard of maintaining the confidentiality of private information obtained from clients, such as personal or financial information, and not disclosing it to others without permission.

Question 18

Sustainability is generally described as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Accepted Answer

The answer of Sustainability is generally described as the ability...

Question 19

Failure to mitigate conflicts of interest would violate the ethical conduct standard of

Accepted Answer

The answer of Failure to mitigate conflicts of interest would...

Question 20

According to SOX,at least one member of the audit committee should be a financial expert.

Accepted Answer

The answer of According to SOX,at least one member of...

Quiz 1: Introduction to Managerial Accounting