Which of the Following Statements Best Describes Why the Profession

question 44

Multiple Choice

Which of the following statements best describes why the profession of certified public accountants has deemed it essential to promulgate a code of professional conduct and to establish a mechanism for enforcing observation of the code?

• A)A distinguishing mark of a profession is its acceptance of responsibility to the public.
• B)A prerequisite to success is the establishment of an ethical code that stresses primarily the professional's responsibility to clients and colleagues.
• C)A requirement of most state laws calls for the profession to establish a code of ethics.
• D)An essential means of self-protection for the profession is the establishment of flexible ethical standards by the professions.

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Definitions:

Cash Inflow

Money entering a business from various sources such as operations, financing activities, and investing activities, contributing to the overall cash balance.

Operating Activities

Operating Activities involve the primary activities a company engages in to generate income, including production, sales, and delivery of its product or service.

Investing Activities

Transactions related to buying or selling long-term assets and investments other than cash equivalents.

Financing Activities

These involve transactions related to raising capital and repaying investors, such as issuing shares and obtaining loans, covered in the cash flow statement.