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:

Net Present Value

The calculation used to determine the present value of all cash flows associated with a project or investment, including initial capital outlay and all subsequent flows, discounted at a particular rate.

Electricity Bills

A periodic payment made by consumers for the electricity that they have consumed during a billing cycle.

Interest Rate

The percentage of the principal amount charged by lenders to borrowers for the use of money.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.