Professional Codes of Conduct Relating to the Accounting Profession

question 42

Multiple Choice

Professional codes of conduct relating to the accounting profession

• A)supercede the provincial laws but not federal laws.
• B)are enforced by the solicitor general of the relevant province.
• C)specify penalties up to and including incarceration.
• D)are not enforceable as they are not actually laws.
• E)specify how professional accountants must behave.

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Definitions:

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out to shareholders.

Low-investment-rate Plan

A strategy or plan offering lower returns on investments, typically associated with lower risk or short-term investment horizons.

Dividends

Payments made by a corporation to its shareholder members from the company‘s earnings.

DDM

The Dividend Discount Model, an investment valuation tool used to estimate the value of a company's stock by considering expected dividends and discounting them back to present value.