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NEW QUESTION 25
A management accountant overheard the company's procurement manager discussing a kickback payment for one of the company s recent projects. The procurement manager promised to pay a share to the other person II the arrangement was kept confidential According to the IMA Statement of Ethical Professional Practice which one of the following is the most appropriate action for the management accountant to take?

A. Report the information directly to a nigh-level company executive since it is a serious matterB. Discuss the incident with his or her own attorney and consider disassociating from the companyC. Call the company's ethics helpline and report the matter anonymouslyD. Take no action since the incident is not related to the accounting department

Answer: A

 

NEW QUESTION 26
A company is considering a capital project that includes the purchase of a new machine costing $100,000. The machines estimated useful life is five years with no salvage value. The annual operating cash inflows from the project are shown below.
Given an effective income tax rate of 20% and using straight-line depreciation, what would be the projects net cash flow in Year 3?

A. $32,000B. $36,000C. $20,000D. $16,000

Answer: B

 

NEW QUESTION 27
If a CMA is asked to conduct a financial assessment of a company owned by a close relative, what would be the proper response under the credibility standard of the IMA Statement of Ethical Professional Practice?

A. Communicate the existence of a constraint that might preclude responsible judgmentB. Advise all parties of a potential conflict of interestC. Keep information confidential except when authorized By the relativeD. Provide an assessment that is timely and accurate despite the personal relationship

Answer: B

 

NEW QUESTION 28
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