Public Accountants Follow the Code of Ethics for Professional Conduct

question 101

Multiple Choice

Public accountants follow the code of ethics for professional conduct established by the

• A)Sarbanes-Oxley Act.
• B)Securities and Exchange Commission.
• C)Financial Accounting Standards Board.
• D)Congress of the United States.
• E)American Institute of Certified Public Accountants.

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Definitions:

Post-Closing Trial Balance

A summary listing of all company accounts that remain after the closing entries are made, ensuring that debits equal credits.

Dividends

Payments made by a corporation to its shareholder members, generally derived from the company's profits.

Accounts Payable

Funds that a company is obligated to pay to its suppliers or lenders for products and services acquired on credit.

Retained Earnings

Retained earnings refer to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends.