Question 1

The main work carried out by Ceres in recent years relates to:

Accepted Answer

A)  climate change. 
B)  reduction and disposal of wastes. 
C)  corporate environmental reporting. 
D)  all of the above.

Question 2

The collective term for any individual or group with an interest in the activities of an entity is a:

Accepted Answer

A)  stakeholder. 
B)  creditor. 
C)  shareholder. 
D)  manager.

Question 3

Which of these is a standard disclosure for sustainability reporting recommended by the Global Reporting Initiative?

Accepted Answer

A)  disclosure of the management approach used 
B)  disclosure of performance indicators 
C)  disclosure of strategy 
D)  all of the above

Question 4

The perspective in the balanced scorecard approach that is concerned with how the business is running internally is the:

Accepted Answer

A)  financial perspective. 
B)  customer perspective. 
C)  learning and growth perspective. 
D)  business perspective.

Question 5

Based on Smith 1997, which is the correct order for these steps in the framework for strategic management accounting? i) Benchmarking
ii. Objectives
iii. Accounting system implications
iv. Evaluation of achievement
v. Strategy alternatives
vi. Situation analysis

Accepted Answer

A)  i, ii, iii, iv, v, vi 
B)  ii, v, i, iv, iii, vi 
C)  ii, vi, i, v, iv, iii 
D)  none of the above

Question 6

'How companies manage the business process to produce an overall positive impact on society', is a definition of:

Accepted Answer

A)  corporate social responsibility. 
B)  ethics. 
C)  environmental responsibility. 
D)  none of the above.

Question 7

A 2011 KPMG survey on triple bottom line reporting found which country to have the largest proportion of major companies that produced a separate corporate report with details of social and environmental performance?

Accepted Answer

A)  UK 
B)  Japan 
C)  USA 
D)  Australia

Question 8

Which of these is not claimed as an advantage of the balanced scorecard approach?

Accepted Answer

A)  Decisions will be based on fact. 
B)  More staff will have a better understanding of the big picture. 
C)  Overhead costs will become a smaller percentage of total costs. 
D)  Continual feedback and review will occur.

Question 9

The essence of triple bottom line reporting is:

Accepted Answer

A)  wealth creation. 
B)  sustainable development. 
C)  pollution control. 
D)  social responsibility.

Question 10

These statements are all correct except:

Accepted Answer

A)  It is no longer sufficient for business to be focused solely on the maximisation of wealth. 
B)  All businesses currently accept that sustainability is the primary goal. 
C)  There is increasing pressure for management to address a much broader range of issues than in the past. 
D)  Social and environmental concerns now have to be taken seriously by business.

Question 11

Which of these is regarded as a benefit of triple bottom line reporting for companies practising it?

Accepted Answer

A)  encouragement of a value-driven culture 
B)  attracting better staff 
C)  better management of risk 
D)  all of the above

Question 12

A study by Deegan and Gordon in 1996 reviewing the accounts of 197 Australian companies found which of the following types of environmental disclosures?

Accepted Answer

A)  compliance with government standards 
B)  use of environmentally safe products in manufacturing 
C)  recycling of materials 
D)  all of the above

Question 13

The balanced scorecard approach was developed by:

Accepted Answer

A)  KPMG. 
B)  Kaplan and Norton. 
C)  John Elkington. 
D)  R Grey.

Question 14

In 2014 in New Zealand, voluntary disclosures in annual reports relating to social responsibility accounting can be described as:

Accepted Answer

A)  rare. 
B)  occasional. 
C)  becoming more common. 
D)  universal.

Question 15

In New Zealand, which of the following have been reactions to high-profile company failures such as that of Feltex?

Accepted Answer

A)  greater disclosure requirements for companies 
B)  Corporate Governance Council set up by the New Zealand Securities Commission 
C)  Royal Commission 
D)  all of the above

Question 16

Reasons why a business might engage in activities that are less profitable to itself but which are beneficial to society are:

Accepted Answer

A)  because of expectations of future legislation. 
B)  to market itself as a good citizen. 
C)  to improve liquidity. 
D)  A and B

Question 17

Which of these groups is recognised by stakeholder theory as having a legitimate interest in the business?

Accepted Answer

A)  government 
B)  customers 
C)  shareholders 
D)  all of the above

Question 18

Which of these is not one of the perspectives from which the balanced scorecard views the business?

Accepted Answer

A)  business process 
B)  financial 
C)  customer 
D)  product

Question 19

The most common area of voluntary social responsibility reporting in New Zealand is:

Accepted Answer

A)  philanthropy. 
B)  nuclear waste. 
C)  human resources (health and safety, working conditions, etc). 
D)  none of the above.

Question 20

Which of these is an argument against corporate social responsibility?

Accepted Answer

A)  Business is about building wealth for its shareholders not helping society. 
B)  It is too costly. 
C)  It is too difficult. 
D)  All of the above.

Exam 14: Trends and Issues in Accounting