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.

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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

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