The Accountant-Client Privilege Is Recognized

question 10

Multiple Choice

The accountant-client privilege is recognized:

• A) only in federal court proceedings.
• B) by virtue of the common law in most states.
• C) only in those states that have enacted statutes creating such a privilege.
• D) in most states by reason of court decisions.

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Definitions:

Correcting Entries

Entries to correct errors made in recording transactions.

Salary Allowance

A predetermined amount paid to employees, which may be part of their salary package, often for specific purposes or expenses.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profitability.

Capital Balances

The amount of equity owned by investors or owners in a company or fund.