ACAMS Practice Questions
Accounting Cycle and Classifying Accounts
Accounting For Managers
Accounting for Merchandising Activities
Accounting for Pensions
Accounting Information Systems
Activity Based Costing
Adjusting Accounts for Financial Statements
Advanced Business Economics
Advertising and Public Relations
Advertising and Sales Promotion
An Overview of International Business
Analysis and Forecasting Techniques
Analyzing and Recording Transactions
Applied Business Research
Asset Demand and Supply under Uncertainty
Auditing and Attestation
Behavioral and Allied Sciences
Bonds and Long Term Notes Payable
Business Analytics & Technology Management Chapter 2
Business Analytics & Technology Management Chapter 3
Business Analytics & Technology Management Chapter 4
Business Analytics & Technology Management Chapter 5
Business Analytics & Technology Management Chapter 6
Business and Company Law
Business Ethics and Governance
Business Ethics Exam
Business Law Study guide
Business Organisations and Environment
Business organization and systems
Business Process Performance
California Real Estate
Capital Budgeting and Managerial Decisions
Changes in Accounting Principles
Changing Marketing Environment
Consolidated Financial Statements
Corporate and Business Law
Cost Accounting Final exam
Cost Accumulation Systems
Cost Allocation Techniques
Cost and Managerial Accounting
Cost of Capital
Cost Terms and Classifications
Cost Volume Profit Analysis
Currency Exchange Rates
Customer Relationships and Value
CVP Analysis and Marginal Analysis
Debt and Bankruptcy
Decision Makers Household Sector
Demand for Money
Derivative Instruments and Hedging Activities
Dividends and Payout Policy
Dividends, Shares, and Income
Elasticities of Demand and supply
Employee Training and Development
Environments of Business
Essence of Management
Ethical and Professional Standards
Ethics and Social Responsibility
Ethics for Management Accountants
External Financial Statements and Revenue Recognition
Federal Securities Acts
Financial and the Nonfinancial Sectors
Financial Decision Making
Financial Intermediaries and Financial Markets
Financial Markets and Securities Offerings
Financial Statements and Accounting Transactions
Flexible Budgets and Standard Costs
Florida Real Estate MCQs
Fraud Internal Control and Cash
Fundamental Accounting Principles
Global Marketing and World Trade
Governmental Accounting State and Local
Health and Life Comprehensive Exam
Health and Life Practice Questions
Human Resource Management
Human Resource Management HRM
Human Resource Planning
Importance of Business Economics
Insurance and Risk Management
Insurance License Texas Life and Health
Integrated Marketing Communications and Direct Marketing
Interactive Marketing and Electronic Commerce
Internal Auditing and Systems Controls
Internal Control and Cash
International Trade and Globalisation
Interpersonal and Organizational Communication
Introduction to Business
Introduction to Human Resource Management
Introduction to Human Resources Assessment
Investment Risk and Portfolio Management
Job Order Costing
Life and Health Insurance
Life Insurance Basics
Life Insurance Policies
Life Insurance Policy
Long Term Investment
Long Term Securities
Management and Cost Accounting
Managerial Accounting Concepts and Principles
Managing Organizational Change
Managing Production and Operations
Managing Products and Brands
Market Segmentation Targeting and Positioning
Marketing and Corporate Strategies
Marketing Channels and Wholesaling
Master Budgets and Planning
Mergers and Acquisitions
Money and Banking
National Health Insurance
Not For Profit Accounting
Organization and Operation of Corporations
Organizational Behavior Essentials
Organizational Markets and Buyer Behaviour
Organizational Structure and Design
Personal Selling and Sales Management
Principles and Practices of Management
Production and Operations Management
Profitability Analysis and Analytical Issues
Profitability Analysis and Decentralization
Property Plant and Equipment
Property Plant and Equipment Exam
Reporting and Analyzing Cash Flows
Reporting and Analyzing Long Lived Assets
Reporting and Analyzing Receivables
Responsibility Accounting and Performance Measures
Risk and Procedures for Control
Service Department Costing
Short Term Financing
Short Term Investment
Standard Costs and Variance Analysis
State Health Insurance
Statement of Cash Flow
Statement of Comprehensive Income
Statement of Financial Position
Stock Market and Stock Prices
Strategic Marketing Process
Structure of Interest Rates
Succession and Transfer Taxes
Supply Chain and Logistics Management
System Analysis and Design
Texas Real Estate
The Management Challenge
Total Quality Management
Understanding Exchange Rates
Understanding Interest Rates
Understanding Interest Rates Determinants
Value Added Tax
Ethics for Management Accountants
Ethics for Management Accountants MCQs
At Key Enterprises, the controller is responsible for directing the budgeting process. In this role, the controller has significant influence with exe...
In accordance with IMA’s Statement of Ethical Professional Practice, a member who fails to perform professional duties in accordance with relevant s...
According to IMA’s Statement of Ethical Professional Practice, a member has a responsibility to recognize professional limitations. Under which stan...
If an IMA member has a problem in identifying unethical behavior or resolving an ethical conflict, the first action (s)he should normally take is to
Consult the board of directors.
Discuss the problem with his or her immediate superior.
Notify the appropriate law enforcement agency.
Resign from the company.
If an IMA member discovers unethical conduct in his or her organization and fails to act, (s)he will be in violation of which of IMA’s ethical stand...
“Refrain from engaging in any conduct that would prejudice carrying out duties correctly.”
“Communicate information fairly and objectively.”
“Disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of reporting analyses or recommendations.”
All of the answers are correct.
IMA’s Statement of Ethical Professional Practice requires an IMA member to follow the established policies of the organization when faced with an et...
Consult the board of directors immediately.
Discuss the problem with the immediate superior if (s)he is involved in the conflict.
Communicate the problem to authorities outside the organization.
Contact the next higher managerial level if initial presentation to the immediate superior does not resolve the conflict.
In which situation is an IMA member permitted to communicate confidential information to individuals or authorities outside the firm?
There is an ethical conflict and the board has refused to take action.
Such communication is legally prescribed.
The IMA member knowingly communicates the information indirectly through a subordinate.
An officer at the IMA member’s bank has requested information on a transaction that could influence the firm’s stock price.
Which ethical standard is most clearly violated if an IMA member knows of a problem that could mislead users but does nothing about it?
IMA’s Statement of Ethical Professional Practice includes an integrity standard, which requires an IMA member to
Decline to become a minority partner in a partnership that is a supplier of the member’s employer.
Report any relevant information that could influence users of financial statements.
Disclose confidential information when authorized by his or her firm or required under the law.
Refuse gifts from anyone.
IMA’s Statement of Ethical Professional Practice includes a competence standard, which requires an IMA member to
Report information, whether favorable or unfavorable.
Develop his or her professional proficiency on a continual basis.
Discuss ethical conflicts and possible courses of action with an unbiased counselor.
Discuss, with subordinates, their responsibilities regarding the disclosure or information about the firm.
Sheila is a financial manager who has discovered that her company is violating environmental regulations. If her immediate superior is involved, her a...
Do nothing since she has a duty of loyalty to the organization.
Consult the audit committee.
Present the matter to the next higher managerial level.
Confront her immediate superior.
IMA members are obligated to maintain the highest standards of ethical conduct. Accordingly, IMA’s Statement of Ethical Professional Practice explic...
Obtain sufficient competent evidence when expressing an opinion.
Not condone violations by others.
Comply with generally accepted auditing standards.
Adhere to generally accepted accounting principles.
Integrity is an ethical requirement for all IMA members. One aspect of integrity requires
Performance of professional duties in accordance with relevant laws.
Avoidance of conflict of interest.
Refraining from using confidential information for unethical or illegal advantage.
Maintenance of an appropriate level of professional expertise.
Under the express terms of IMA’s Statement of Ethical Professional Practice, an IMA member may not
Encroach on the practice of another IMA member.
Disclose confidential information unless authorized or legally required.
Accept other employment while serving as a financial manager or management accountant.
An IMA member discovers a problem that could mislead users of the firm’s financial data and has informed his or her immediate superior. (S)he should...
The immediate superior, who reports to the chief executive officer, knows about the situation but refuses to correct it.
The immediate superior assures the member that the problem will be resolved.
The immediate superior reports the situation to his or her superior.
The immediate superior, the firm’s chief executive officer, knows about the situation but refuses to correct it.
Recently, Fan Club, Inc., submitted to management a budget for the coming year. Included in the budget were the plans for a new product, a rechargeabl...
The budget has not been approved and therefore is not for publication
The price has not been established, so expectations must be managed.
The staff member exposed the company to a potential lawsuit.
The employee should refrain from disclosing confidential information.
A new management accountant is concerned about complying with the ethical standard of competence in the IMA’s Statement of Ethical Professional Prac...
Maintain expertise in all areas of accounting.
Continually develop knowledge and skills.
Perform duties in accordance with relevant regulations and standards.
Provide recommendations that are accurate and timely.
Scott Jon, a new accounting clerk at a firm that had recently terminated several employees due to budgetary cutbacks, accidentally viewed his supervis...
Chris Benedict was recently tried and convicted in court for producing and selling illegal narcotic drugs. None of the activity occurred during work h...
At NC Corporation, year-end bonuses at each branch office are based on branch profitability. Due to a slow economy, profitability through the third qu...
Requesting the branch’s advertising agency to delay billing third-quarter advertisements until January
Deferring advertising expense by reducing the number of newspaper advertisements run in the third quarter.
Deferring planned painting and refurbishment of the warehouse until the following year.
Offering additional discounts to customers to entice them to increase purchases in the third quarter.
The Foreign Corrupt Practices Act prohibits
Bribes to all foreigners.
Small bribes to foreign officials that serve as facilitating or grease payments.
Bribery only by corporations and their representatives.
Bribes to foreign officials to influence official acts.
Mark Tian, a staff accountant, becomes aware of an off-balance-sheet bank account where funds have been diverted with offsetting credits approved by h...
Put concerns in writing to the immediate supervisor and copy the company’s independent auditor.
Discuss concerns with the level of management above the immediate supervisor.
Communicate concerns confidentially to the company’s independent auditor.
Communicate concerns confidentially to the company’s external legal counsel.
A company has a December 31 year end. Which one of the following options to increase net income during the last month of the companyâ€™s fiscal y...
Persuade suppliers to postpone billing until January .
Delay the year-end closing until January 4 to capture sales over the New Yearâ€™s holiday in the current year.
Reduce the calculated allowance for bad debts and bad debt expenses.
Postpone planned marketing expenditures until January.
You have examined your organization’s financial statements and determined that they present a number of significant items in a fraudulent manner. Yo...
Confidentiality and Integrity.
An accountant has concerns that a particular transaction is being recorded in a manner that does not reflect the nature of the transaction and believe...
Discuss the issue with the next level of management over the accounting manager.
Discuss the issue with the company’s independent accounting firm.
Discuss the issue with the firm’s legal counsel.
Resign from the position with the company.
An accountant has frequent business contact with customers, suppliers, and creditors in the course of performing professional duties. Which of the fol...
The accountant accepted two World Cup tickets from a supplier and flew to the stadium in the company’s jet along with a number of the supplier’s executives.
The accountant speaks quarterly with analysts regarding the company’s past performance and future prospects.
The accountant attends a professional conference where the accountant goes out to dinner and socializes with accountants from other companies in the industry.
The accountant attends a charity event at the invitation of the company’s audit firm, which bought two tables of tickets to support the event.
What law prohibits U.S. companies from paying bribes to foreign officials for the purpose of obtaining or retaining business?
Federal Ethical Standards Act.
Foreign Corrupt Practices Act.
North American Free Trade Agreement.
The U.S. Foreign Corrupt Practices Act is particularly focused on the dealings of financial institutions and the safeguarding of the global financial ...
Extortion and bribery.
The reporting of accounting information plays a central role in the regulation of business operations. The importance of sound internal control practi...
Separation of responsibilities for the recording, custodial, and authorization functions.
Sound personnel practices.
Documentation of policies and procedures.
Implementation of state-of-the-art software and hardware.
Which of the following is not an aspect of the Foreign Corrupt Practices Act of 1977?
It subjects management to fines and imprisonment.
It prohibits bribes to foreign officials.
It requires the establishment of independent audit committees.
It requires an internal control system to be developed and maintained
Corporations have the responsibility to issue financial statements that are timely, accurate, and transparent, reflecting all the transactions of the ...
I and II only.
I and III only.
II and III only.
II and IV only.
Firms subject to the reporting requirements of the Securities Exchange Act of 1934 are required by the Foreign Corrupt Practices Act of 1977 to mainta...
Report clients with unsatisfactory internal control to the SEC.
Provide assurances to users as part of the traditional audit attest function that the client is in compliance with the present legislation.
Express an opinion on the sufficiency of the client’s internal control to meet the requirements of the Act.
Attest to the financial statements.
Which of the following best describes an important provision of the U.S. Foreign Corrupt Practices Act?
Auditors cannot provide bookkeeping or other services related to the accounting records or financial statements of the audit client.
Companies must follow the laws of the their home country as well as the laws of the countries where any foreign subsidiaries are located.
The CEO and CFO must certify that they have no knowledge of any corrupt practices occurring in any overseas subsidiaries of U.S. companies.
The internal accounting controls should be examined, and if material weaknesses are found, controls must be strengthened.
Which one of the following statements best characterizes the provisions of the Foreign Corrupt Practices Act (FCPA)?
The FCPA requires corporations to keep records and accounts in sufficient detail to reflect transactions.
The FCPA requires compliance with corporate codes of conduct to be reviewed and reported on by external auditors.
The FCPA provides for treble damages in civil cases brought under the law.
The FCPA provides for criminal penalties for auditors who fail to report a corporation’s participation in bribery.
Which of the following issues is addressed by Section 406 of the Sarbanes-Oxley Act? I. Full, fair, timely, and accurate financial statement disclosu...
I, II, III, and IV only.
II, IV, and V only.
I, III, and V only.
III and IV only.
Which one of the following is a true statement regarding organizational ethics?
As long as officer and employee behavior meet the requirements of the law, the organization can be considered to have a functioning system of ethical behavior.
A strong sense of ethics on the part of employees who are in the best position to appropriate cash and other assets is the most vital part of a functioning system of ethical behavior.
If an organization has a strong code of ethical conduct in place, the role of employee training can be downplayed.
Paying attention to “whistleblowers” plays a significant role in maintaining an effective ethical atmosphere.
IMA’s Statement on Management Accounting, “Values and Ethics: From Inception to Practice,” recommends a defined code of conduct and ethical beha...
Provides employees with guidance for handling unfamiliar situations.
Ensures ethical behavior by all employees.
Shields the organization from liability in cases of loss of stockholder value due to fraud.
Eases the investigative process performed by police and prosecutors in cases of suspected fraud.
Which one of the following is a true statement regarding organizational ethics?
A comprehensive framework of corporate ethical behavior is a prerequisite for an effective system of internal control.
An effective system of internal control is a prerequisite for corporate ethical behavior.
If a functioning system of ethical behavior is in place, an organization is able to devote fewer resources to developing human capital.
“Organizational culture” is determined mostly by the industry(ies) in which the firm operates.
A company’s code of conduct states, “Our employees are our most valuable asset.” Which one of the following policies best illustrates that manag...
The company relies on supervisors rather than manuals to train employees in their responsibilities.
Final terms on all major purchase and sales contracts are negotiated only by management.
Management and the board of directors meet annually at a luxury resort for a strategic planning conference.
Management declines to accept bonuses earned in any year in which no raises are given to employees.
Which of the following statements describe the importance of a whistleblowing framework in maintaining an ethical organizational culture? I. It provi...
I and II only.
II and IV only.
III and IV only.
I, III, and IV only.
Quentin Jam is a new accountant assisting in the month-end close of the books for Sheldrake, Ltd. His supervisor told him to accrue a large receivable...
Jam should evaluate the materiality of the receivable to determine if it is worthy of follow-up.
Jam should confront his supervisor about the undocumented receivable that appeared to be inaccurate.
Jam should present this issue to his supervisor’s manager to resolve it.
Jam should report to the board of directors that Sheldrake did not truly meet the earnings estimate.
Games Unlimited has convened a group of employees to review the companyâ€™s code of ethics and propose revisions and improvements. One of the sug...
Opportunities to enhance and improve internal controls.
A confidential means for employees to report possible violations.
A method for defining the organizationâ€™s behavioral values.
A means for the collection, analysis, and summarization of ethical issues.
The management team of GranMark, Inc., attended an ethics training session at the IMA Annual Conference and subsequently made plans to enhance GranMar...
Leadership by example.
Measurement of ethical compliance.
Alignment of internal controls with ethical standards.
In order for an ethics code to become a reality in practice, every aspect of a companyâ€™s activity should be affected by the code. Ethical behav...
Fair value, cycle time, quality, and service warranty.
Reputation, risk, cost/benefit, and value-stream return.
Negotiation, problem resolution, delivery, and inventory support.
Environment, resource usage, outage impact, and waste/disposal.
Which one of the following ethics-related actions by management is least effective in encouraging acceptance by employees of an organization’s code ...
Management appoints an ethics officer to monitor and report to management on employee compliance.
Management follows ethical principles in decisions made on behalf of the organization.
Management keeps promises and commitments made to employees, customers, and vendors.
Management supports employees in adhering to ethics standards.
Misappropriation of assets is most often perpetrated by
Inappropriate earnings management is typically considered one form of
Fraudulent financial reporting.
Theft of assets.
Misappropriation of assets.
When none of the three fraud risk factors are present, an accountant
Can rule out the presence of fraud.
Should consider the likelihood of fraud to be high.
Should not rule out the presence of fraud completely.
Will likely search more diligently for fraud.
Management is often able to rationalize the commission of fraud by
Blaming it on others.
Forcing staff to perpetrate it.
Reasoning that it is in the best interests of the company.
High risk of employee fraud is most likely when there is pressure, rationalization, and
The fraud risk factor that may be mitigated by internal controls is
In the fraud risk model, rationalization relates to
The ability of a person not only to perpetrate but also to conceal fraud.
The need for cash or other resources.
A person’s ability to justify actions as consistent with his or her personal code of ethics.
The belief that the ends justify the means.
The term or expression most associated with misappropriation of assets is
Fraudulent financial statements.
Failure to file a tax return.
Most employee fraud cases involve
Misstatement of financial statements.
Overstatement of revenues.
Need for social acceptance.
Financial or vice-related pressures.
Who is responsible for minimizing the opportunity to misappropriate assets in an organization?
The external auditor.
Rationalization of a fraud by an employee may be in the form of all the following except
Pressure from one’s spouse.
Feelings of being underpaid.
Belief in being overworked.
Belief that rank has its privileges.
Which of the fraud risk factors related to employee fraud can be effectively controlled by the organization?
Fraudulent financial reporting is most often committed by
Management to deceive financial statement users.
An auditor while performing an audit.
Employees stealing assets.
Public record searches may be effective in certain instances. Which of the following is a limitation on public record searches?
It is often very costly to search public records.
Very few types of information are available.
The information from public sources is most often incorrect.
Availability of records may be limited.
Based on the fraud risk model, which of the following is the most likely motive for employee fraud?
Ineffective internal controls.
Belief that rank has its privileges.
The Public Company Accounting Oversight Board and the SEC would be most interested in an organization’s activities related to
The misappropriation of assets.
Failure to adequately compensate employees.
Effectiveness of internal controls.
Fraudulent financial reporting.
Based on the fraud risk model, which of the following most likely is not an opportunity to commit employee fraud?
Lack of transaction authorizations.
Living beyond one’s means.
Poor accounting records.
Lack of physical controls.
Which of the following are red flags indicating misappropriation of assets? I. Unexplained budget variances II. Poor supervision III. Failure of ce...
I and II only.
II and III only.
I and III only.
I, II, and III.
An employee is stealing office supplies and believes that everybody else is doing it. The fraud risk factor represented by the employee is
Ghosting employees is a form of fraud that
Expects employees to work for nothing.
Understates labor expense by failing to record payroll.
Records payroll to another account in an attempt to understate payroll expense.
Maintains employees on the payroll who no longer work for the organization.
What is the most likely reason for management to overstate expenses?
To minimize tax liability.
To earn a bonus.
To maximize net income.
To maximize cash on hand.
A proper segregation of duties requires that an individual
Authorizing a transaction records it.
Authorizing a transaction maintain custody of the asset that resulted from the transaction.
Maintaining custody of an asset be entitled to access the accounting records for the asset.
Recording a transaction not compare the accounting record of the asset with the asset itself.
The frequency of the comparison of recorded accountability with assets (for the purpose of safeguarding assets) should be determined by
The amount of assets independent of the cost of the comparison.
The nature and amount of the asset and the cost of making the comparison.
The cost of the comparison and whether the susceptibility to loss results from errors or fraud.
The auditor in consultation with client management.
An adequate system of internal controls is most likely to detect a fraud perpetrated by a
Group of employees in collusion.
Group of managers in collusion.
Internal control cannot be designed to provide reasonable assurance regarding the achievement of objectives concerning
Reliability of financial reporting.
Elimination of all fraud.
Compliance with applicable laws and regulations.
Effectiveness and efficiency of operations.
Internal controls may be preventive, detective, corrective, or directive. Which of the following is preventive?
Requiring two persons to open mail.
Reconciling the accounts receivable subsidiary file with the control account.
Using batch totals.
Preparing bank reconciliations.
Segregation of duties is a fundamental concept in an effective system of internal control. Nevertheless, the internal auditor must be aware that this ...
Lack of training of employees.
Collusion among employees.
Irregular employee reviews.
Absence of internal auditing.
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