Answers to the following.................................attached files
Noreen 3e Practice Exam – Chapter 1
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. ______________________ A series of steps that are followed in order to carry out some task in a
b. ______________________ Anything that prevents an organization or individual from getting
more of what it wants.
c. ______________________ A five-step management approach that organizes resources around
the flow of business processes.
d. ______________________ 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. ______________________ The major business functions that add value to a company’s products
2. Indicate beside each statement below whether it is True (T) or False (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.
_____ b. Many accounting professional organizations, such as the IMA and the AICPA, have
standards of ethical behavior their members should follow.
_____ 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.
_____ d. The IMA Code of Conduct consists of two major parts: general ethical guidelines and
specific guidance for unethical situations.
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