One of the Differences Between the Ethical Obligations of CPAs

question 53

Multiple Choice

One of the differences between the ethical obligations of CPAs and lawyers is:

• A) Lawyers are obligated first and foremost to the public interest while CPAs are obligated to their clients' interests
• B) Lawyers are obligated first and foremost to the client's interest while CPAs are obligated to the public interest
• C) Lawyers and CPAs both must be independent of their clients
• D) Lawyers and CPAs must exercise objective judgment

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all items available for sale during the period.

Equivalent Unit

A concept in cost accounting used to allocate costs to partially completed goods, equating them to an amount of finished goods.

Fabricating Department

A section within a manufacturing facility where raw materials are transformed into components or products through various processes like cutting, assembling, or molding.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.