The AICPA's Code of Professional Conduct

question 9

Multiple Choice

The AICPA's Code of Professional Conduct:

• A) Applies only to accountants who work in public accountant practice as licensed CPAs
• B) Potentially applies to all licensed CPAs, whether they work in government, industry, academia, or public practice
• C) Provides a comprehensive definition of the accounting standards that collectively comprise GAAP
• D) Provides a comprehensive set of the accounting standards that comprise both GAAP and GAAS

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Definitions:

Unearned Rent

Unearned rent is money received by a landlord for rent that has not yet been earned because the rental period has not occurred. It is recorded as a liability until the period passes.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.