Which of the Following Is the Best Statement of the Duty

question 38

Multiple Choice

Which of the following is the best statement of the duty owed by an accountant in his or her professional work?

• A)To do the job correctly and discover all irregularities.
• B)To follow generally accepted accounting principles (GAAP)and generally accepted auditing standards (GAAS).
• C)To act as a professional and not commit fraud.
• D)To exercise the skill and care of the ordinarily prudent accountant in the same circumstances.

Analyze the effects of cash collections and sales discounts on financial statements.

Perform bank reconciliations and understand their importance for internal control over cash.

Calculate net realizable value of receivables and understand its significance in financial reporting.

Understand the impact of sales returns, allowances, and credit card discounts on gross profit calculation.

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Definitions:

Stimulus

A stimulus is any external or internal change that influences the activity of an organism or any of its parts, leading to a physiological response.

Differentiation

The process by which cells or tissues undergo a change toward a more specialized form or function, often in the context of development.

Metabolism

The set of life-sustaining chemical reactions in organisms that allows them to grow, reproduce, maintain their structures, and respond to their environments.

Growth

The process of increasing in size, number, value, or strength.