In Which of the Following Situations Would a CPA Not

question 53

Multiple Choice

In which of the following situations would a CPA not be considered independent?

• A)where a CPA has obtained an auto loan from a banking client in the current year.
• B)where a CPA has obtained an automobile lease term from a client in the current year.
• C)where a CPA has obtained a $4,000 retainer for services from a banking client in the current year.
• D)where a CPA has obtained a home mortgage loan from a client in the current year.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash, typically with short maturities and high liquidity.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered to be cash equivalents.

Net Cash

The amount of cash remaining after all cash inflows and outflows have been accounted for over a specific period.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments, as part of the company's investment strategy.