Question

The management accountant violated the IMA's code of professional ethics. Question 9 (1 point) At the end of 2XX1, sales at ABC Company totaled $5 million. Sales for the year ended 2XX2 was reported at $8 million. This number included a sale of $2.5 million, which was recorded on December 31, 2XX2, the last day of the companyiis fiscal year. On further investigation, you learned that the customer placed the order but it was not filled until January 7, 2XX3 because ABC Company did not have a key raw material to produce the product ordered. Based on the IMARs Statement of Ethical Professional Practice standards, which of the following is true regarding this situation? Competence guideline is violated. Due professional case guideline is violated. Objectivity guideline is violated. Confidentiality guideline is violated. Question 10 (1 point) According to the IMA's standards, if an account manager does not disclose delays or deficiencies in information, timeliness and processing they would violate what IMA section: Competence o te

Answer 1

Q9.

Answer: 3^rd option

This is the violation of objectivity guideline. This indicates relevant and reliable information in accounting, so that the users of financial statements can rely on those and can make necessary decision flawless for future.

Sales could only be presented in the books of accounts if its required performance obligation is complete. There was only a receiving of order but no delivery of goods during the period; therefore, performance obligation was not complete yet; this should not be recorded as sales at the end of 2XX2.

Other options are not correct:

1^st option: this is the technical guideline; therefore, not relevant here.

2^nd option: this is the guideline for auditors; therefore, not relevant here.

4^th option: this is relating to privacy of valuable documents of a company, which is not relevant here.