According to the Profession's Ethical Standards,a CPA Would Be Considered

question 41

Multiple Choice

According to the profession's ethical standards,a CPA would be considered independent in which of the following instances?

• A) A client leases part of an office building from the CPA, resulting in a material indirect financial interest to the CPA.
• B) The CPA has a material direct financial interest in a client, but transfers the interest into a blind trust.
• C) The CPA owns an office building and the mortgage on the building is guaranteed by a client.
• D) The CPA belongs to a country club client in which membership requires an annual fee.

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Definitions:

Purity

The condition or quality of being free from contamination, pollutants, or immoral behavior; often associated with cleanliness or moral wholesomeness.

Wavelength

A measure of the distance between consecutive points of a wave, typically used in the context of electromagnetic waves.

Night

The period of darkness in each twenty-four hours; the time from sunset to sunrise.

Receptors

Specialized cells or proteins that detect and respond to external substances, such as hormones, neurotransmitters, or sensory stimuli.