To Whom Does an Accountant Have Potential Liability

question 49

Multiple Choice

To whom does an accountant have potential liability?

• A)To his client only.
• B)To an intended third party beneficiary.
• C)To a foreseen user of the accountant's work.
• D)All of the above.

Understand the purpose and operation of a petty cash fund, including establishment, replenishment, and adjustment.

Recognize the different types of documents and their roles in internal control and cash management.

Identify the components that affect the cash balance per books and per bank.

Analyze how specific transactions impact the adjusted cash balance per books.

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Definitions:

Denial

In psychoanalytic theory, the defense mechanism that allows the mind to deny that a current source of anxiety exists.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Neo-Freudian Psychologist

A psychologist belonging to a movement that adapted and extended Freud's theories, focusing more on social and cultural factors for personality.

Collective Unconscious

Carl Jung's concept of a part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.