Which of the Following Is a True Statement Regarding the Enforcement

question 52

Multiple Choice

Which of the following is a true statement regarding the enforcement mechanism for CPA conduct?

• A) The PCAOB has the authority to investigate and discipline registered public accounting firms.
• B) All disciplinary action by the AICPA must go through the Joint Trial Board.
• C) Disciplinary actions taken by the AICPA are not disclosed to the public.
• D) Only a few states have adopted the AICPA rules of conduct.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including the cost of the materials and labor directly used to create the product.

FIFO Costs

First In, First Out, a cost flow assumption for inventory valuation where the oldest inventory items are recorded as sold first.

FIFO Inventory

A method of inventory valuation where the first items placed into inventory are the first ones sold; stands for First-In, First-Out.

Periodic Inventory

An inventory accounting system where inventory counts and cost of goods sold (COGS) are determined at the end of an accounting period.