Which of the Following Is Correct with Regard to an Accountant's

question 9

Multiple Choice

Which of the following is correct with regard to an accountant's contractual liability?

• A) An accountant is bound to perform all the duties she explicitly agrees to perform
• B) An accountant implicitly agrees to perform a contract in a competent and professional manner
• C) An accountant who breaches his contract with a client may also be liable to a third party intended beneficiary
• D) All of these are correct.

Distinguish between financial statements and tax forms preparation principles.

Understand the components and presentation of a balance sheet.

Recognize the elements and significance of owners' equity.

Identify the main objective of financial reporting.

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Definitions:

One-price Policy

A pricing strategy where a retailer sets a fixed price for all customers, eliminating bargaining or negotiation.

Fixed-price Policy

A pricing strategy where the price of a product or service is set and not subject to change based on market fluctuations or negotiation.

Customary Pricing

Pricing strategy based on traditional costs or prices established over time within a specific industry or market for certain goods or services.

Below-market Pricing

A pricing strategy where products or services are offered at a price lower than the prevailing market rates to attract more customers or gain market share.