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Identifying ethical standards

The Institute of Management Accountants’ Statement of Ethical Professional Practice requires managerial accountants to meet standards regarding competence, confidentiality, integrity, and credibility. Consider the following situations. Which standard(s) is(are) violated in each situation?

a) You tell your brother that your company will report earnings significantly above financial analysts’ estimates.

Short Answer

Expert verified

The ethical standard violated, in this case, is Confidentiality.

Step by step solution

01

Definition of a financial analyst

The financial analyst refers to the person whose job is to assess the financial position of the business or the assets.

02

Identification of violated ethical standards

The correct option is Confidentiality standards.

In this case, the information related to the earnings is shared with the brother before it is publicly announced violated the standard of integrity. The company’s financial information should be kept secret before they publish it.

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Comparing managerial accounting and financial accounting For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA):

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11.Salary of the sales manager

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The Glass Doctors repair chips in car windshields. The company incurred the following operating costs for the month of July 2018:

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Windshield repair materials 4,100

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Depreciation on building and equipment 900

Supplies used 450

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Requirements

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