Regarding Proper Ethical Guidelines, Which (If Any) of the Following

question 105

Multiple Choice

Regarding proper ethical guidelines, which (if any) of the following is correct?

• A)The use of client estimates in preparing a return is not acceptable.
• B)Under no circumstances should a question on a tax return be left unanswered.
• C)If a client has made a mistake in a prior year's return and refuses to correct it, you should withdraw from the engagement.
• D)If the exact amount of a deduction is not certain so as to increase the appearance of greater certainty.
• E)None of the above.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and falls when consumer income decreases, opposite to inferior goods.

Inferior Goods

Goods whose demand decreases as the income of consumers increases, in contrast to normal goods.

Income

Income generated regularly from employment or investments.

Soda

A carbonated soft drink that is flavored and sweetened, often consumed as a beverage.