Which of the Following Is Not Defined as an Act

question 28

Multiple Choice

Which of the following is not defined as an act discreditable in either the Rules or the Interpretations of the AICPA's Code of Professional Conduct?

• A) The CPA firm's partner in charge failed to file his tax return for the past year.
• B) The CPA firm discriminates in its hiring practices based on the age of the applicant.
• C) The CPA retains the client's books and records to enforce past-due payment of the CPA's bill, even after the client has demanded they be returned.
• D) The CPA firm's partner-in-charge was a passenger in a car driven by his wife. On the way home from the firm's Christmas party, she was charged with "driving while intoxicated."

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Definitions:

Speculative Bonds

Speculative bonds are high-risk, high-reward investment securities that have a lower credit rating and offer higher yields to compensate for their increased risk.

Fourth Market

Direct trading of stocks and securities among investors or institutions without the use of a broker or public exchange.

Exchange-Listed Stocks

Shares of companies that are traded on a formal exchange, such as the New York Stock Exchange or Nasdaq.

Corporate Ownership

The legal ownership of a corporation, typically represented by shares of stock which provide voting rights and potential dividends to their holders.