The Ethical Concept of Independence Means That an Accountant Employed

question 17

Multiple Choice

The ethical concept of independence means that an accountant employed:

• A)by a corporation cannot prepare financial statements for use by the company's bank.
• B)by one company cannot work part-time for another company.
• C)by an auditing firm cannot own any stock in the company being audited.
• D)by one company cannot accept a job with another company in the same industry.

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Definitions:

Hospital Bills

Expenses incurred for medical treatment and hospital stays, often payable by the patient or their insurance provider.

Congestion Area

A term used in technical analysis to describe a range-bound price movement in a security or market, characterized by repeated support and resistance levels.

Figure Chart

Figure chart, often referred to as a point and figure chart, is a charting tool used in technical analysis that plots price movements without regard to time, focusing solely on price actions.

Put/call Ratio

This is a technical indicator that measures the relative trading volume of put options to call options, often used to gauge market sentiment and potential market direction.