Objectivity Requires That a CPA Should

question 33

Multiple Choice

Objectivity requires that a CPA should:

• A) Maintain a mental attitude of intellectual honesty and independence
• B) Maintain a mental attitude of intellectual honesty and impartiality
• C) Act in accordance with the best interests of one's client
• D) Act in accordance with the best interests of one's employer

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Definitions:

Efficiency Loss

The loss of potential economic welfare when resources are not optimally allocated, leading to outcomes where potential benefits exceed costs.

Sacrificed Output

The quantity of goods or services forgone in the production of another good or service, highlighting the concept of opportunity cost.

Tax Revenue

The financial earnings governments receive through taxing.

Income Inequality

The unequal distribution of an economy’s total income among households or families.