The AICPA Code of Professional Conduct Would Be Violated If

question 60

Multiple Choice

The AICPA Code of Professional Conduct would be violated if a CPA accepted a fee for services and the fee was:

• A) Fixed by a public authority.
• B) Based on a price quotation submitted in competitive bidding.
• C) Based on performing work relating to judicial proceedings.
• D) Payable if the audit of the financial statements led to a loan.

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Definitions:

Discounting Note Receivable

The process of reducing the value of a note receivable to reflect its current worth by applying an interest rate.

Endorsing Note

A legal act of signing the back of a negotiable instrument, such as a check, to assign its benefits to another party.

Bank Discount Rate

The interest rate at which a country's central bank lends money to domestic banks, often used as a benchmark for other interest rates.

Proceeds of the Note

The total amount of money received from issuing a note payable, including the principal and any interest.