The AICPA's Trust Services Criteria Practice That States a Company

question 74

Multiple Choice

The AICPA's Trust Services Criteria practice that states a company should have policies and practices to maintain the privacy of customer data is under the title of:

• A)Choice and consent
• B)Collection
• C)Use and retention
• D)Notice

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business, whichever is longer.

Inventory

Inventory consists of goods and materials a business holds for the ultimate purpose of sale, production, or utilization.

Payout Ratio

Measures the percentage of earnings distributed in the form of cash dividends; computed by dividing cash dividends declared on common stock by net income.

Net Income

The amount of money remaining from revenues after subtracting all costs, expenses, and taxes, indicating the profit earned.