Management accountants have a responsibility to be objective. What does this ethical standard require of management accountants?
What will be an ideal response?
Answers will vary
This standard requires accountants to communicate information fairly and objectively and to disclose fully all relevant information that could influence a user's understanding of reports and recommendations.
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Clear Window Cleaners Clear Window Cleaners purchased new cleaning equipment at the beginning of 2011. The equipment has a cost of $53,000, an estimated life of 5 years, and an estimated residual value of $3,000. A full year's depreciation expense is to be recorded in 2011. The equipment was used 20,000 hours during 2011 and 24,000 hours during 2012. The number of expected hours over five years
is 125,000. Refer to the information provided for Clear Window Cleaners. By what amount would double-declining-balance depreciation exceed straight-line depreciation over the 5-year life of the equipment? A) The salvage value of $3,000. B) Cost less total depreciation. C) Cost plus total depreciation. D) Total depreciation expenses under double-declining-balance and straight-line depreciation are equal.
______ methods are used when no measurable, reliable, historic, or statistical data are available and are primarily based on intuition, judgment, or informed opinions of experts in the industry.
A. Market research B. Qualitative C. Quantitative D. Causal
Plant assets are used in operations and have useful lives that extend over more than one accounting period.
Answer the following statement true (T) or false (F)
You have just read the annual report of a mutual fund. It boasted of a 26% return and advertised that it had beat the market return last year by three percentage points
In doing some research you discover the fund had a beta of +1.5 and the return on risk-free Treasury securities was 15.0%. Assuming a market risk premium of 8.0% should be used to evaluate performance means that A) the fund's performance was impressive; three percentage points is significant, given the above data. B) the fund's performance was good, but not impressive; it beat the market, but only by one percentage point not three. C) the fund's performance was no better than what you would have expected. D) the fund's performance was actually a percentage point less than what you would have expected.