Which of the Following Is Not a Fundamental Principle in Codes

question 14

Multiple Choice

Which of the following is not a fundamental principle in codes of conduct for professional accountants?

• A)Act in the client's best interest
• B)Objectivity and independence
• C)Maintain the good reputation of the profession
• D)Maintain confidentiality
• E)Not to be associated with misleading information

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Definitions:

Ease of Formation

The simplicity with which a new business or organization can be legally established.

Treasury Stock

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Financing Activities

These pertain to transactions involving raising capital and repaying it to investors, including the payment of dividends, in the statement of cash flows.

Common Stock Cash Dividend

A payment made to shareholders out of a company's earnings, specifically to common stockholders.