A CPA Wants to Understand the Difference Between the Duty

question 33

Multiple Choice

A CPA wants to understand the difference between the duty of confidentiality and the accountant-client privilege.She lives in a state in which an accountant-client privilege has been enacted.A key difference between the duty of confidentiality and the accountant-client privilege is that:

• A) The accountant-client privilege ceases to exist once an accountant-client relationship is terminated by the client
• B) The accountant client privilege ceases to exist once an accountant-client relationship is terminated by either the client or the accountant
• C) The accountant-client privilege only protects communications from disclosure, but the duty of confidentiality applies more broadly to protect observations, documents, and communications
• D) The duty of confidentiality only protects communications from disclosure, but the accountant-client privilege is a legal enactment that applies more broadly to protect observations, documents, and communications

Apply the concept of sunk costs to financial decisions.

Analyze sell or process further decisions.

Evaluate the financial implications of replacing equipment.

Understand the impact of fixed and variable costs on product line decisions.

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Definitions:

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit from business operations, often through cost management and optimal pricing.

Competitive Firm

A Competitive Firm is a company that operates in a market where it must set its price equal to the market price due to the presence of many competitors, with no single firm able to influence market conditions.

Marginal Product

The additional output generated by employing one more unit of input.

Production Functions

Mathematical representations of the relationship between a firm's inputs and its outputs.