The Following Is a List of Circumstances That Might Be

question 18

Multiple Choice

The following is a list of circumstances that might be faced by a public accounting firm.Select the rule violated of the AICPA Code of Professional Conduct in the second column.If no rule is violated select "no violation" (this may be used once,more than once,or not at all) .Rules may be used either once,or not at all.
-A CPA does not follow generally accepted auditing standards in the audit of a nonpublic US company.

• A)Acts discreditable.
• B)Accounting principles.
• C)Integrity and objectivity.
• D)Compliance with standards.
• E)Independence.
• F)Contingent fees.
• G)No violation.

---

Definitions:

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects cash from credit customers.

Sales Returns

Goods returned by customers to the seller after the sale has occurred, typically due to defects or dissatisfaction.

Allowances

Reductions or adjustments to the carrying amount of assets or the amount of a liability, often related to accounts receivable or inventory to reflect possible uncollectibility or diminution in value.

Deposits in Transit

Deposits in Transit are amounts that have been received and recorded by a business but not yet reflected in its bank statement.