Which of the Following Situations Best Describes an Advocacy Threat

question 104

Multiple Choice

Which of the following situations best describes an advocacy threat? PA has been hired to

• A)consult with the corporate controller and the bank manager about the conditions for financing a loan.
• B)manage the accounting department for three weeks while the corporate controller is on vacation.
• C)complete the personal tax returns of all executive management.
• D)prepare the year end journal entries for a subsidiary company.

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Definitions:

Annual Rate of Return

The percentage of return on an investment over a one-year period, including interest, dividends, and capital gains.

Net Income

A company's total profit calculated by subtracting total expenses from total revenue.

Product Line

A series of related products offered by a company that serve similar functions or are targeted at a similar customer base.

Fixed Costs

Expenses that do not change with changes in the volume of production or sales, such as rent or salaries.