Which of the Following Is True

question 75

Multiple Choice

Which of the following is true?

• A)The existence of generally accepted accounting principles (GAAP)virtually eliminates the need for professional judgment except in very unusual circumstances.
• B)Federal securities laws regarding the issuance of misleading financial statements apply not only to the independent auditors,but to management of the company as well.
• C)Attaining a passing score on the part of the Uniform CPA Examination that covers professional ethics is evidence of integrity and commitment to ethical conduct.
• D)A professional accountant should resign his position rather than become involved in the distribution of financial statements indicating insolvency.

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Definitions:

Maslow's Hierarchy

A theory in psychology that arranges human needs in a pyramid, with basic needs at the bottom and self-actualization at the top.

Basic Need

Fundamental requirements necessary for sustaining human life, including food, water, shelter, and safety.

Subjective Well-Being

Self-perceived happiness or satisfaction with life. Used along with measures of objective well-being (for example, physical and economic indicators) to evaluate people’s quality of life.

Financial Satisfaction

The feeling of contentment or happiness with one's financial situation, including income, savings, and investments.