Which of the Following Could Give Rise to an Accountant's

question 35

Multiple Choice

Which of the following could give rise to an accountant's criminal liability?

• A) Falsely completing a tax return
• B) Tampering with accounting records
• C) Advising a client to falsely complete his own tax return
• D) All of these could subject an accountant to criminal liability.

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Definitions:

Interest Expense

The expense an entity faces for using borrowed capital over a specific time frame.

Inventory Turnover

A financial ratio that measures how often a company's inventory is sold and replaced over a specific period.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all expenses, interest, and taxes have been deducted.

FIFO

First In, First Out (FIFO) is an inventory valuation method where goods that are first acquired are the first to be sold, useful in managing inventory and costs.