Print these pages. Answer each of the following questions, explaining your answers or showing your work, and then compare your solutions to those provided at the end of the practice exam.
1.Match each of the following terms with its definition.
Enterprise risk management
a. __ Business process _ A series of steps that are followed in order to carry out some task in a business.
b. __ Constraint _ Anything that prevents an organization or individual from getting more of what it wants.
c. __ Lean production _ A five-step management approach that organizes resources around the flow of business processes.
d.__ Enterprise risk management _ A process used by a company to help identify the risks that it faces and to develop responses to those risks that enable the company to be reasonably assured of meeting its goals.
e.__ Value chain _ The major business functions that add value to a company’s products and services.
2.Indicate beside each statement below whether it is True (T) or False (F): _F__ a. It isn’t really important that accountants behave ethically since what they do will always be specifically bound by accounting rules such as GAAP. _T__ b.Many accounting professional organizations, such as the IMA and the AICPA have standards of ethical behavior their members should follow. _T__ c. Being ethical and making ethical choices is part of the integrity of a person’s character, which can be very important to CEOs hiring CFOs. _T___ d. The IMA Code of Conduct consists of two major parts: general ethical guidelines and specific guidance for unethical situations.
GNB 14e Practice Exam Solutions – Chapter 1
d.Enterprise risk management
a.False; accountants are often faced with pressure to ignore or otherwise “bend” the rules...