The Rules of Accounting Bodies in Canada Require Their Members

question 9

Multiple Choice

The rules of accounting bodies in Canada require their members to behave in the best interest of the profession and the public.Identify the situation where the accountant is acting in the best interest of the profession.An accountant

• A)reports a fellow accountant after noticing that the accountant helped a client with tax evasion.
• B)openly criticizes a fellow accountant's competencies after having lost a bid for a new client.
• C)brags about his competence and professional title,and encourages clients to invest in a new venture he is starting.
• D)refuses to cooperate with the new auditor after having lost a client.

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Definitions:

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Cost of Trade Credit

The effective interest rate associated with taking discounts offered by suppliers for early payment or the cost of forgoing those discounts.

Net 30

A payment term indicating that full payment is due within 30 days of the invoice date.