Bill Is the Accountant for Cheatam and Sons Co

question 59

Multiple Choice

Bill is the accountant for Cheatam and Sons Co. For many years he has kept two sets of books, one with real figures and another with figures he will use in case the IRS audits. When Bill, while working on Cheatam's books, is arrested for fraud, what will happen to the books?

• A) They are privileged communications and therefore inadmissible as evidence against Bill.
• B) They are protected by the Fifth Amendment and therefore are inadmissible.
• C) They may be admitted as evidence since they were taken pursuant to a valid arrest.
• D) They may be admitted as evidence only if Bill consented to a search of his offices.

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Definitions:

Paid-in Capital

The total amount of money investors have contributed to a company in exchange for shares of stock.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the number of shares owned by shareholders.

Stockholders' Equity

The residual interest or ownership in the assets of a corporation after deducting liabilities, often referred to as shareholders' equity.

Stock Dividend

A form of dividend payment made in shares of stock rather than cash, often signaling a company's growth prospects or lack of sufficient cash flow.