Question 1

Reporting can be done from a horizontal or vertical point of view, the former focused on the performance of a single firm, the latter focused on the entire ______ of a product.

Accepted Answer

A)  Price range 
B)  Value chain 
C)  Marketing plan 
D)  Packaging

Question 2

______ reporting, exemplified by the CEO Water Mandate, is a multi-stakeholder process involving industry and NGOs that culminates in a formal method for monitoring and disclosing adverse environmental impacts.

Accepted Answer

A)  Internal 
B)  Independent 
C)  Traditional 
D)  Collaborative

Question 3

A manufacturing company decides to report its greenhouse gas footprint. The indirect emissions resulting from electricity consumption, generated by the electricity provider to fulfill the manufacturer's demand forecasts, are an example of ______ Emissions.

Accepted Answer

A)  Scope 1 
B)  Scope 2 
C)  Scope 3 
D)  Scope 4

Question 4

The SEC's Commission Guidance Regarding Disclosure Related to Climate Change advises managers to provide ______ disclosures about known trends associated with climate change that are reasonably likely to have a material impact on a company's operations.

Accepted Answer

A)  Retrospective 
B)  Supplier 
C)  Semi-annual 
D)  Future-oriented

Question 5

The Greenhouse Gas ______, a partnership between the World Resources Institute and the World Business Council for Sustainable Development, is an accounting tool used to understand, quantify, and manage greenhouse gas emissions.

Accepted Answer

The answer of The Greenhouse Gas ______, a partnership between...

Question 6

The majority of companies that report sustainability performance in the S&P 500 use the ______ framework, which is the most widely used sustainability reporting framework in the world.

Accepted Answer

A)  Vertical view 
B)  European Union 
C)  World Bank 
D)  Global Reporting Initiative

Question 7

Improved public image, stakeholder relations, and employee morale are all potential benefits of ______.

Accepted Answer

A)  Life cycle assessment 
B)  Cradle to cradle design 
C)  Reporting sustainability performance 
D)  Virtual offices

Question 8

Although this issue has traditionally been treated as discretionary, many financial reporting and accounting standards arguably require disclosure of a publicly traded business's reliance on ______.

Accepted Answer

A)  Imported goods 
B)  Ecosystem services 
C)  Renewable energy 
D)  Rare earth minerals

Question 9

The ISO ______ series provides tools to identify and report on the adverse impacts of business, including facility-specific water use; life-cycle impact analysis of products in development; and auditing protocols.

Accepted Answer

A)  9000 
B)  14000 
C)  26000 
D)  12000

Question 10

Water ______ tools measure water use, polluted water discharge, and water- related business risks across a variety of geographic contexts and industry sectors.

Accepted Answer

A)  Footprint 
B)  Withdrawal 
C)  Collection 
D)  Emissions

Question 11

Disclosure of environmental and social impacts may be necessary to satisfy investors; to become eligible for sustainability certifications from third-party providers; and to attain listing on the ______ Sustainability Indices.

Accepted Answer

A)  Global Reporting Initiative 
B)  UN Global Compact 
C)  Dow Jones 
D)  Chamber of Commerce

Question 12

This metric, ______ per unit of production, tracks water use through the entire supply chain and production process for a given time period and divides that total volume of water by units of production.

Accepted Answer

A)  Carbon density 
B)  Revenue share 
C)  Scope 3 
D)  Water intensity

Question 13

______ analysis is used to quantify impacts on climate change, air quality, water resources, forests, fisheries, and soil quality, among other environmental mediums.

Accepted Answer

A)  Conservation 
B)  Environmental footprint 
C)  Preservation 
D)  MD&A

Question 14

The International Organization for ______ has developed standards for organizational guidance in the area of environmental management.

Accepted Answer

A)  Standardization 
B)  Safety 
C)  Sustainability 
D)  Generalization

Question 15

One of the roles of accounting professionals in promoting transparency is to develop methodologies to quantify ______ that impact stakeholders.

Accepted Answer

A)  Product costs 
B)  Externalities 
C)  Incentives 
D)  Supply costs

Question 16

The World Resources Institute and the World Business Council for Sustainable Development partnered to develop the ______, an accounting tool used to understand, quantify, and manage greenhouse gas emissions.

Accepted Answer

A)  Groundwater footprint 
B)  CEO Water Mandate 
C)  Greenhouse Gas Protocol 
D)  Global Reporting Initiative

Question 17

Product life-cycle assessment includes four steps: Define the scope and goal; identify the kinds of environmental impacts that might occur; conduct ______; and interpret the results for stakeholders.

Accepted Answer

A)  Market research 
B)  Impact assessment 
C)  Internal investigations 
D)  External reporting

Question 18

Information is ______ if there is a substantial likelihood that a reasonable investor would consider it important to an investment decision.

Accepted Answer

The answer of Information is ______ if there is a...

Question 19

______ are standards of measurement designed to capture critical information about corporate performance in the form of objective data.

Accepted Answer

A)  Greenhouse gas protocols 
B)  Metrics 
C)  Requests for disclosure 
D)  ISO 14000

Question 20

How does the SEC's MD&A analysis influence corporate disclosure obligations? Include an explanation of materiality.

Accepted Answer

The answer of How does the SEC's MD&A analysis influence...

Exam 5: Metrics, Tools, and Reporting: The Role of Finance and Accounting