Which of the Following Statements Best Defines the Principle of Independence

question 17

Multiple Choice

Which of the following statements best defines the principle of independence as per AICPA's Code of Professional Conduct,ET Sec.55,Article IV?

• A) It requires a member to discharge professional responsibilities with competence and diligence.
• B) It imposes the responsibility to render services promptly and carefully, to be thorough, and to observe applicable technical and ethical standards.
• C) It precludes relationships that may appear to impair a member's objectivity in rendering various professional services.
• D) It induces members to disclose any confidential client information without the specific consent of the client.

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Definitions:

Tax Laws

are the legal rules and regulations governing how individuals, businesses, and other entities are taxed by the government.

Capital Gains

The profit from the sale of a capital asset, such as stocks or real estate, over its purchase price.

Residual Dividend Policy

A strategy for setting dividend payments based on the firm's residual or leftover equity after funding all its investment projects.

Debt-Equity Ratio

A financial ratio that shows the relative amounts of shareholders' equity and debt financing used to fund a company's assets.