Assume That a Managerial Accountant Regularly Communicates with Business Associates

question 2

Multiple Choice

Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of:

• A)objectivity.
• B)confidentiality.
• C)integrity.
• D)credibility.
• E)unified behaviour.

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Definitions:

Expenses

Costs incurred by a business in the process of earning revenue.

Revenues

Total financial earnings of a company derived from its key operational processes, including the sale of products or services.

Equity

The value of the shares issued by a company, representing the ownership interest in the company's assets after liabilities are subtracted.

Accounts Payable

The short-term liabilities or obligations a company owes to its suppliers or creditors for goods and services received.