According to the IMA Code of Ethics, What Should a Management

question 8

Multiple Choice

According to the IMA Code of Ethics, what should a management accountant do if a significant ethical situation can't be resolved?

• A) The accountant should confront the guilty party and demand the unethical action be stopped.
• B) The accountant should try to rationalize and understand the position of the other party.
• C) The accountant should say nothing about the matter until he or she has retired.
• D) The accountant should first discuss the matter with the immediate supervisor.

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Definitions:

Verbal Agreement

An agreement made through spoken words and not formally recorded in writing, yet is legally binding.

Specific Performance

A legal remedy where a court requires a party to fulfill their obligations under a contract, rather than providing a financial compensation.

Guarantee Agreement

A legal contract in which one party agrees to be responsible for another's financial obligations or performance under a contract if the latter fails to meet their obligations.

Loan Agreement

A contract between a borrower and lender, specifying the loan's terms, repayment schedule, and interest rate.