Tiny Is an Accountant

question 27

Multiple Choice

Tiny is an accountant. Tiny's violation of generally accepted accounting principles and generally accepted auditing standards

• A) does not indicate that Tiny was negligent.
• B) is prima facie evidence that Tiny was negligent.
• C) precludes Tiny from raising any defense against a negligence claim.
• D) will never subject Tiny to liability.

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Definitions:

Annual Coupon

The yearly interest payment made by a bond to its holder.

Par Value

A legal amount per share established by a company's charter, not necessarily related to market value, often used for accounting purposes.

Zero-Coupon Bond

A debt security that does not pay interest (coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its face value.

Yield to Maturity

The total return anticipated on a bond if held until it matures, considering all payments of interest and principal and the time value of money.