If the Board of Accountancy in the State in Which

question 143

Multiple Choice

If the board of accountancy in the state in which a CPA firm is licensed has rules that are different than the AICPA's rules, the CPA firm must follow

• A) whichever rules are less restrictive.
• B) whichever rules are more restrictive.
• C) the rules of the AICPA.
• D) the rules of the state's board of accountancy.

---

Definitions:

Installment Note

A loan that requires regular payments, or installments, of principal and interest over a set period of time.

Issuing Company

A company that offers its securities for sale to the public or to private investors.

Indenture

A formal legal agreement, contract, or document, especially one outlining the terms of a bond or other financial debt instrument.

Debenture

A type of debt instrument that is not secured by physical assets or collateral.