Q3. Ethical challenges for management accountants include:(A.Whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions.B.Whether to report unfavorable department information that may result in unfavorable consequences for a friend.C.Whether to file a tax return for this year.D.Both A and B are correct. Q4. Mark Johns is the new division controller of the Frozen-Foods Division of LindelFoods. Lindel Foods has reported a minimum 15% growth in annual earnings for eachof the past 5 years. The Frozen-Foods Division has reported annual earnings growthof more than 20% each year in this same period. During the current year, theeconomy went into recession. The corporate controller estimates a 10% annualearnings growth rate for Lindel Foods this year. One month before the December 31fiscal year-end of the current year, Johns estimates the Frozen-Foods Division willreport an annual earnings growth of only 8%. Linda Kay, the Frozen-foods Divisionpresident, is not happy, but she notes that the "end-of-year actions" still need to betaken.Johns makes some inquiries and is able to compile a list of end-of-year actionsthat were more or less accepted by the previous division controller. Which one of thefollowing proposed actions would clearly present an ethical dilemma to the companyand violate the IMA Standards of Ethical Conduct?(A.Deferring December's routine monthly maintenance on packaging equipment by an independent contractor untilJanuary of next year.B.Extending the close of the current fiscal year beyond December 31 so that some sales of next year are included.C.Giving salespeople a double bonus to exceed December sales targets.D.Deferring the current period's advertising by reducing the number of television spots run in December and runningmore than planned in January of next year.

Solution Note : Dear student as per the Q&A guideline we are required to answer the first…

23. Ethical challenges for management accountants include:( A.Whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions. B.Whether to report unfavorable department information that may result in unfavorable consequences for a friend. OC.Whether to file a tax return for this year. O D.Both A and B are correct.

23. Ethical challenges for management accountants include:( A.Whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions. B.Whether to report unfavorable department information that may result in unfavorable consequences for a friend. OC.Whether to file a tax return for this year. O D.Both A and B are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The main purpose of company accounts is stewardship, so accounting standards based on ‘decision-usefulness for investors’ are misconceived. And making the standards compulsory ‘Instructions’ rather than voluntary ‘Suggestions’ causes problems. What are your thoughts on this in relation to PAS 1?
Which of the following statement is false? 1.Financial Accounting is optional. 2.Management Accounting is used by internal users. 3.Financial Accounting is based on double entry system. 4.Management Accounting is future oriented.
Evaluate the following statements from an ethical perspective:“Earnings management in a narrow sense is the behavior of management to play with the discretionary accrual component to determine high or low earnings.”“Earnings are potentially managed, because financial accounting standards still provide alternative methods.”
1.What are the impact of issues in management accounting practices on the company and stakeholder? 2. Elaborate some suggestions to avoid the recurrence of the issues in management accounting practices.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Identify and explain as an example at least 3 scenarios (related with ethics in management accounting only) where Credibility is not followed so that staff may have a better understanding of these guidelines?
Which of the following statements regarding the consistency concept is not true? Select one: A. The objective of the consistency concept is to facilitate comparison between one period and another B. A selected accounting method must be used consistently every year C. A company cannot change the selected accounting method once it is used D. If inconsistency is found, the company must provide full explanation in the Statement of Profit or Loss and Other Comprehensive Income itself, or in the Statement of Financial Position, or in the notes to the accounts
1. What are interesting facts/ fun facts about management accounting practices? 2. Explain one example management accounting dishonest practices that talked a around the whole?