Management Accountants Have a Responsibility to Be Credible

question 83

Short Answer

Management accountants have a responsibility to be credible. What does this ethical standard require of management accountants?

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Definitions:

Discounted Note

A promissory note sold for less than its face value, which will be worth its full value upon maturity; used as a form of short-term financing.

Interest Expense

This is the cost incurred by an entity for borrowed funds, reflected as an expense on the income statement.

Adjusting Entry

A record entered at the conclusion of an accounting cycle to assign revenues and expenses to the appropriate period.

Discounted Note

A promissory note, or loan agreement, where the interest is deducted from the principal amount at the time the loan is issued.