A CPA Who Is a Member of the AICPA Failed

question 19

Multiple Choice

A CPA who is a member of the AICPA failed to abide by the AICPA's Code of Professional Conduct.The state in which she practices accounting requires all CPAs to abide by "all professional standards." This CPA's license to practice accounting will potentially be:

• A) Suspended
• B) Revoked
• C) Not affected
• D) All of the above

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Definitions:

Revenue Accounts

Accounts that track the income generated by a company from its normal business operations or other activities.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Prepaid Insurance

An asset account that represents the amount of insurance premium payments made in advance for coverage extending beyond the current accounting period.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.