What Is One of the Restrictions on Public Company Accounting

question 1

Multiple Choice

What is one of the restrictions on Public Company Accounting Oversight Board (PCAOB) ?

• A) The Chairmen must be a practicing CPa.
• B) Only two members are allowed to be, or have been a CPA.
• C) Each member must be on the board of directors of a major corporation.
• D) All board members must put their investment holdings into a blind trust account while serving on the PCAOB.

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Definitions:

Substitute Marriage Cohabitation

A living arrangement where couples live together as if married without legally formalizing the union.

Common-law Marriage

A marriage recognized in some jurisdictions, where a couple lives together for a period and presents themselves as married without having a formal ceremony or license.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of accounts receivable that may not be collectible.

Bad Debts Expense

Bad debts expense is the cost associated with accounts receivable that a company does not expect to collect due to customers being unlikely to pay.