If Kayla Is Called to Testify at Trial,would She Likely

question 80

Multiple Choice

If Kayla is called to testify at trial,would she likely be required to reveal information about Carter's financial statements?

• A)No,because federal law recognizes the accountant-client privilege.
• B)No,because of the attorney-client privilege.
• C)Yes,because no accountant-client privilege exists and the attorney-client privilege does not apply because Kayla is not an attorney.
• D)Yes,because no accountant-client privilege exists.
• E)Yes,because the communication was not made in confidence for the purpose of obtaining legal advice from the attorney.

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Definitions:

Discounting

The process of determining the present value of future cash flows by applying a discount rate.

Compounding

The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.

Simple Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.

Note Payable

A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.