If a CPA Leaves a Job in Public Accounting to Commence

question 15

Multiple Choice

If a CPA leaves a job in public accounting to commence work as a member of a company's internal accounting staff,this CPA:

• A) No longer has to be concerned about conflicts of interest
• B) Still has to be concerned about conflicts of interest involving former clients as well as conflicts of interest arising at her new workplace
• C) Only has to be concerned about conflicts of interest involving her former clients because industry accountants are not subject to the AICPA's conflict of interest rules
• D) Does not have to be concerned about conflicts of interest that may arise between loyalty to her new employer and loyalty to her former employer

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Semi-Annually

Semi-annually refers to an event or action occurring twice a year, typically every six months.

Real Rate Of Return

The yearly return percentage on an investment, modified for price level changes caused by inflation or other external factors.

Nominal Rate

The nominal rate is the interest rate set by the lending institution, not adjusted for inflation, representing the face value of the interest rate.