The Accountant-Client Privilege Provides That ________

question 39

Multiple Choice

The accountant-client privilege provides that ________.

• A)only an accountant can serve as a witness for his or her client in a court action
• B)an accountant's paperwork be used as prima facie evidence against his or her client in a court action
• C)an accountant cannot be called as a witness against his or her client in a court action
• D)an accountant does not enjoy work product immunity when his or her client is accused of gross negligence

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities on the cash flow statement, where net income is adjusted for changes in balance sheet accounts to reconcile to cash provided by or used in operations.

Comparative Balance Sheets

Financial statements that present the assets, liabilities, and equity of an entity at different points in time for comparison.

Free Cash Flow

The cash a company generates after accounting for cash outflows to support operations and maintain capital assets.

Cash Budgeting

The process of estimating future cash inflows and outflows to determine the cash position and to plan for any surplus or deficit.