When CPAs Are Able to Maintain Their Actual Independence, It

question 67

Multiple Choice

When CPAs are able to maintain their actual independence, it is referred to as independence in

• A) conduct.
• B) appearance.
• C) fact.
• D) total.

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Definitions:

Capital Reserve

Funds set aside from a company's profits for future investments or to cover anticipated liabilities or losses.

U.S.GAAP

United States Generally Accepted Accounting Principles, which are the set of accounting standards used for financial reporting in the U.S.

Accrual-Basis

An accounting method that records income and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.

Cash-Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.