Under the Antifraud Provisions of Section 10(b)of the Securities Exchange

question 20

Multiple Choice

Under the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934, a CPA may be liable if the CPA acted:

• A)negligently.
• B)with independence.
• C)without due diligence.
• D)without good faith.

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Definitions:

Total Revenue

Total revenue is the total amount of money received by a company from sales of its goods or services before any expenses are subtracted.

Price Inelastic

Refers to a situation where the demand for a product does not change much with a change in price.

Demand Curve Elastic

A characteristic of the demand curve where the quantity demanded by consumers changes significantly as a result of price changes.

Total Revenue

Total revenue is the total amount of money received by a firm from selling its goods or services before any expenses are deducted.