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:

Saving and Investment

The act of setting aside income for future use and allocating it to instruments expected to generate returns over time

Nominal-Wage Rigidity

The situation where nominal wages are slow to adjust to changing economic conditions, affecting employment and economic dynamics.

Classical Self-Correction Mechanism

A theory suggesting that free markets are capable of automatically adjusting to and correcting economic imbalances.

Recessions

A temporary downturn in the economy marked by decreased trade and industrial activities, typically recognized by a decline in Gross Domestic Product (GDP) for two consecutive quarters.