Which of the Following Statements About the AICPA Is True

question 100

Multiple Choice

Which of the following statements about the AICPA is true?

• A)The AIPCA is historically self-regulated.
• B)The AIPCA is regulated by the federal government.
• C)The AIPCA is regulated the state governments.
• D)The AIPCA is a new organization established by an act of congress in 2002.

---

Definitions:

External Costs

Costs of a transaction or activity that affect parties who did not choose to incur that cost, often not reflected in the market price.

Social Cost

The total cost to society as a whole, including both private costs incurred by firms or individuals and external costs imposed on others.

Free Riders

A person who receives the benefit of a good without paying for it. Because it is often virtually impossible to restrict the consumption of public goods to those who pay, these goods are subject to free-rider problems.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.