Which of the Following Statements Best Differentiates a Principle and a Rule

question 45

Multiple Choice

Which of the following statements best differentiates a principle and a rule as per AICPA's Code of Professional Conduct?

• A) A principle is an external person who oversees the behavioral actions of those who practice a profession, while a rule is a value-based internal force for behavioral action.
• B) A principle is an external person who oversees the behavioral actions of those who practice a profession, while a rule is an authoritative regulatory force for behavioral action.
• C) A principle is a value-based internal force for behavioral action and a rule is an authoritative regulatory force for behavioral action.
• D) A principle is regulatory force with advanced education and training and a rule is a value-based internal force for behavioral action.

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Definitions:

Desired Balance

The target balance that an individual or organization aims to achieve in their financial account or budget.

Budgeted Receipts

The anticipated revenues or income expected to be received within a specified budget period.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their liquidity.

Budgeted Disbursements

Planned financial outflows or payments calculated in advance as part of a budgeting process, often categorized and scheduled over a specific period.