SUSTAINABILITY ACCOUNTING EXAM 1
QUESTIONS AND ANSWERS
Which of these criteria is not required in order for an enterprise to be considered
sustainable?
a) Socially justified
b) Environmentally sound
c) Increases public wealth with proper mechanisms for its distribution
d) Ethically conducted
e) All of the above are required. - Answer- E- All of the Above
What three words that begin with a "p" are commonly used in reference to the "triple
bottom"? - Answer- Performance (profit), the people, and the planet
Sustainability reporting can first be traced back to which continent?
a) Europe
b) North America
c) South America
d) Asia
e) Africa - Answer- A- Europe
The four climate change issues the SEC expected registrants to consider for disclosure
in the SEC's report, "Commission Guidance Regarding Disclosure Related to Climate
Change," included all of the following, except:
a) The impact of legislation and regulation
b) The impact on available qualified employees
c) The impact of international accords or treaties
d) Indirect consequences of regulation or business trends
e) Physical impacts of climate change - Answer- B- The impact on available qualified
employees
Which of the following is not one of the 3 ways that firms can create value through
sustainability development, reporting and efforts?
a) Advanced preparation for future governmental taxation and regulatory programs
b) Reduced dependence on technology
c) Gaining a competitive advantage in the eyes of the many current and prospective
stakeholders
d) Increased employee retention and morale - Answer- B- Reduced dependence on
technology
True or False? The Big Four public accounting firms have promoted variations of
sustainability reporting. - Answer- True
, In the context of sustainability efforts, the initials GRI stand for what three words? -
Answer- Global, Reporting and Initiative
True or False? The format and content of existing sustainability reports are not
standardized and range in quality and reliability. - Answer- True
Positive Assurance means
a) The accountants are not aware of any modifications that need to be made to a report
b) The accountants feel good about the progress the client has made with their
reporting.
c) The accountants can say whether or not the sustainability disclosures are fairly
presented.
d) The accountants have agreed to perform the same assurance engagement in the
next year. - Answer- c) The accountants can say whether or not the sustainability
disclosures are fairly presented.
True or False? An organization's knowledge of its sustainability performance is about
identifying risks, not opportunities. - Answer- True
True or False? Intangible assets are more vulnerable to impairment in value by
mismanagement than Property, Plant & Equipment assets. - Answer- True
The "sustainable, responsible, and impact investing" field had grown to what percentage
of the total assets under management of 36.8 trillion, per a report issued in 2014?
a) 5%
b) 18%
c) 35%
d) 45% - Answer- c- 18%
When you hear the initials ESG in the context of sustainability they are typically referring
to what? - Answer- Environmental, social and governance
Which Supreme Court Justice spoke early in the past century about the benefits of
disclosure as, "Publicity is justly commended as a remedy for social and industrial
diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient
policeman."
a) Justice Oliver Wendell Holmes
b) Justice Thurgood Marshall
c) Justice Louis Brandeis
d) Justice Earl Warren - Answer- c) Justice Louis Brandeis
The history of the Securities Act demonstrates that it was intended to
a) Protect investors
b) Influence corporate behavior
c) A & B
d) None of the above - Answer- a)Protect investors
QUESTIONS AND ANSWERS
Which of these criteria is not required in order for an enterprise to be considered
sustainable?
a) Socially justified
b) Environmentally sound
c) Increases public wealth with proper mechanisms for its distribution
d) Ethically conducted
e) All of the above are required. - Answer- E- All of the Above
What three words that begin with a "p" are commonly used in reference to the "triple
bottom"? - Answer- Performance (profit), the people, and the planet
Sustainability reporting can first be traced back to which continent?
a) Europe
b) North America
c) South America
d) Asia
e) Africa - Answer- A- Europe
The four climate change issues the SEC expected registrants to consider for disclosure
in the SEC's report, "Commission Guidance Regarding Disclosure Related to Climate
Change," included all of the following, except:
a) The impact of legislation and regulation
b) The impact on available qualified employees
c) The impact of international accords or treaties
d) Indirect consequences of regulation or business trends
e) Physical impacts of climate change - Answer- B- The impact on available qualified
employees
Which of the following is not one of the 3 ways that firms can create value through
sustainability development, reporting and efforts?
a) Advanced preparation for future governmental taxation and regulatory programs
b) Reduced dependence on technology
c) Gaining a competitive advantage in the eyes of the many current and prospective
stakeholders
d) Increased employee retention and morale - Answer- B- Reduced dependence on
technology
True or False? The Big Four public accounting firms have promoted variations of
sustainability reporting. - Answer- True
, In the context of sustainability efforts, the initials GRI stand for what three words? -
Answer- Global, Reporting and Initiative
True or False? The format and content of existing sustainability reports are not
standardized and range in quality and reliability. - Answer- True
Positive Assurance means
a) The accountants are not aware of any modifications that need to be made to a report
b) The accountants feel good about the progress the client has made with their
reporting.
c) The accountants can say whether or not the sustainability disclosures are fairly
presented.
d) The accountants have agreed to perform the same assurance engagement in the
next year. - Answer- c) The accountants can say whether or not the sustainability
disclosures are fairly presented.
True or False? An organization's knowledge of its sustainability performance is about
identifying risks, not opportunities. - Answer- True
True or False? Intangible assets are more vulnerable to impairment in value by
mismanagement than Property, Plant & Equipment assets. - Answer- True
The "sustainable, responsible, and impact investing" field had grown to what percentage
of the total assets under management of 36.8 trillion, per a report issued in 2014?
a) 5%
b) 18%
c) 35%
d) 45% - Answer- c- 18%
When you hear the initials ESG in the context of sustainability they are typically referring
to what? - Answer- Environmental, social and governance
Which Supreme Court Justice spoke early in the past century about the benefits of
disclosure as, "Publicity is justly commended as a remedy for social and industrial
diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient
policeman."
a) Justice Oliver Wendell Holmes
b) Justice Thurgood Marshall
c) Justice Louis Brandeis
d) Justice Earl Warren - Answer- c) Justice Louis Brandeis
The history of the Securities Act demonstrates that it was intended to
a) Protect investors
b) Influence corporate behavior
c) A & B
d) None of the above - Answer- a)Protect investors
