OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 13: Sustainability Reporting
Principles of Accounting, Volume 2: Managerial Accounting
Chapter 13: Sustainability Reporting
Multiple Choice
1. LO 13.1 Which agreement did 196 nations adopt in December 2015?
A. Oslo Accord
B. Paris Climate Agreement
C. Kyoto Agreement
D. Copenhagen Accord
Solution
B
2. LO 13.1 The 2015 Paris Agreement on Climate Change aimed to limit the increase of global
temperatures to ________.
A. 0.5 °C
B. 1.0 °C
C. 1.5 °C
D. 2.0 °C
Solution
C
3. LO 13.1 Good corporate citizenship ________.
A. is expensive to implement and does not guarantee returns
B. must have management’s sincere convictions behind it in order to succeed
C. is more relevant in countries with less regulation.
D. makes good business sense
Solution
D
4. LO 13.1 According to the World Commission on Environment and Development, how is
sustainable development defined?
A. It meets the needs of the future without compromising the ability of the present
generations to meet their own needs.
B. It applies the fairness doctrine that no generation, present or future, will be disadvantaged
in their ability to meet their own needs.
C. It meets the needs of the present without compromising the ability of future generations
to meet their own needs.
D. none of the above
Solution
C
5. LO 13.1 Sustainability reporting can incorporate which of the following?
A. environmental reporting
B. social reporting
C. business viability reporting
D. all of the above
Solution
D
Page 1 of 7
, OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 13: Sustainability Reporting
6. LO 13.1 What caused Union Carbide’s deadly gas leak in Bhopal, India, which killed 3,000
and injured 42,000?
A. a combination of low staff levels, corruption, pay-offs to employees to keep quiet, and
the manager going on vacation the day before the leak
B. diversion of funds and resources to a Northern India project that also took staff from the
Bhopal plant, plus many safety issues, including fines imposed on community members
who camped too close to the plant
C. employees’ deciding to have lunch before dealing with the pressure buildup inside the
tank and bribes paid to the government employees who inspected the plant
D. a combination of low staff levels, numerous safety issues, and a lack of immediate
employee attention to the problem as pressure built up inside the tank
Solution
D
7. LO 13.1 Nestlé’s reputation was damaged when the company was accused of which of the
following?
A. forcing mothers to buy baby formula within days of delivering their babies
B. promoting inadequate nutrition in developing countries
C. providing cheap formula to mothers in developing countries, but more expensive to
mothers in developed countries
D. selling poor quality bottled water to developing countries
Solution
B
8. LO 13.1 Which form of energy is renewable?
A. solar
B. oil
C. coal
D. nuclear
Solution
A
9. LO 13.1 Which of the following types of reporting does the Triple Bottom Line not
incorporate?
A. management
B. social
C. environmental
D. economic
Solution
A
10. LO 13.2 Which of the following best defines stakeholders?
A. investors and lenders
B. environmental groups
C. anyone directly or indirectly affected by the organization
D. groups or individuals financially impacted by the organization
Solution
C
11. LO 13.2 Which of the following statements is most often the case?
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Chapter 13: Sustainability Reporting
Principles of Accounting, Volume 2: Managerial Accounting
Chapter 13: Sustainability Reporting
Multiple Choice
1. LO 13.1 Which agreement did 196 nations adopt in December 2015?
A. Oslo Accord
B. Paris Climate Agreement
C. Kyoto Agreement
D. Copenhagen Accord
Solution
B
2. LO 13.1 The 2015 Paris Agreement on Climate Change aimed to limit the increase of global
temperatures to ________.
A. 0.5 °C
B. 1.0 °C
C. 1.5 °C
D. 2.0 °C
Solution
C
3. LO 13.1 Good corporate citizenship ________.
A. is expensive to implement and does not guarantee returns
B. must have management’s sincere convictions behind it in order to succeed
C. is more relevant in countries with less regulation.
D. makes good business sense
Solution
D
4. LO 13.1 According to the World Commission on Environment and Development, how is
sustainable development defined?
A. It meets the needs of the future without compromising the ability of the present
generations to meet their own needs.
B. It applies the fairness doctrine that no generation, present or future, will be disadvantaged
in their ability to meet their own needs.
C. It meets the needs of the present without compromising the ability of future generations
to meet their own needs.
D. none of the above
Solution
C
5. LO 13.1 Sustainability reporting can incorporate which of the following?
A. environmental reporting
B. social reporting
C. business viability reporting
D. all of the above
Solution
D
Page 1 of 7
, OpenStax Principles of Accounting, Volume 2: Managerial Accounting
Chapter 13: Sustainability Reporting
6. LO 13.1 What caused Union Carbide’s deadly gas leak in Bhopal, India, which killed 3,000
and injured 42,000?
A. a combination of low staff levels, corruption, pay-offs to employees to keep quiet, and
the manager going on vacation the day before the leak
B. diversion of funds and resources to a Northern India project that also took staff from the
Bhopal plant, plus many safety issues, including fines imposed on community members
who camped too close to the plant
C. employees’ deciding to have lunch before dealing with the pressure buildup inside the
tank and bribes paid to the government employees who inspected the plant
D. a combination of low staff levels, numerous safety issues, and a lack of immediate
employee attention to the problem as pressure built up inside the tank
Solution
D
7. LO 13.1 Nestlé’s reputation was damaged when the company was accused of which of the
following?
A. forcing mothers to buy baby formula within days of delivering their babies
B. promoting inadequate nutrition in developing countries
C. providing cheap formula to mothers in developing countries, but more expensive to
mothers in developed countries
D. selling poor quality bottled water to developing countries
Solution
B
8. LO 13.1 Which form of energy is renewable?
A. solar
B. oil
C. coal
D. nuclear
Solution
A
9. LO 13.1 Which of the following types of reporting does the Triple Bottom Line not
incorporate?
A. management
B. social
C. environmental
D. economic
Solution
A
10. LO 13.2 Which of the following best defines stakeholders?
A. investors and lenders
B. environmental groups
C. anyone directly or indirectly affected by the organization
D. groups or individuals financially impacted by the organization
Solution
C
11. LO 13.2 Which of the following statements is most often the case?
Page 2 of 7
