For Which of the Following Services Must a CPA Be

question 30

Multiple Choice

For which of the following services must a CPA be independent?

• A) Audits: Yes; Reviews: Yes; Compilations: Yes
• B) Audits: Yes; Reviews: Yes; Compilations: No
• C) Audits: Yes; Reviews: No; Compilations: No
• D) Audits: Yes; Reviews: No; Compilations: Yes

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Definitions:

Present Value

The contemporary valuation of an upcoming sum of money or cash flows over time, factoring in a designated rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Par Value

The stated value of a bond or stock by the issuing entity, which may not mirror its actual value in the market.

Periodic Interest Payments

Regular payments made to a lender by a borrower, covering the interest incurred on the borrowed funds.