Independence Is Required of a CPA Performing

question 3

Multiple Choice

Independence is required of a CPA performing:

• A)Audits,but not any other professional services.
• B)Attestation services,but not other professional services.
• C)Attestation and tax services,but not other professional services.
• D)All professional services.

Know how adjusting entries affect both income statement and balance sheet accounts.

Understand the concept and accounting treatment of depreciation.

Recognize the effects of not making appropriate adjusting entries on financial statements.

Differentiate between accrued revenue/expenses and deferred revenue/expenses and their respective treatments.

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Definitions:

Oligopolistic Model

A market structure characterized by a small number of large firms dominating the market, leading to limited competition and high barriers to entry.

Monopolist

An individual or firm that holds a monopoly in a particular market, having exclusive control over the supply of a good or service and, therefore, substantial market power.

Cournot Model

An economic model describing an industry structure in which companies compete on the amount of output they will produce, which they decide independently and at the same time, leading to a state of equilibrium.

Maximize Profits

The process or strategy employed by businesses to increase their net earnings to the highest possible level.