Under Which of the Following Situations Is the Payment or Receipt

question 22

Multiple Choice

Under which of the following situations is the payment or receipt of a commission by a public accountant (PA) permissible?

• A)A PA has a lawyer for an audit client;each time the lawyer helps the PA by referring a new client,the PA pays the lawyer a $1,000 referral fee.
• B)A PA performs a review of the financial statements of a client.The PA also works as a commissioned salesperson for that client.
• C)A PA has a dry-cleaning business as a client.The PA is given a 10% discount on cleaning services each time a new customer comes to the dry cleaner on the recommendation of the PA.The PA only prepares tax returns for the dry-cleaning business.
• D)An audit client that sells automobiles pays the PA $500 each time a customer that was referred to the audit client by the PA buys a car.

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Definitions:

Youth

The period of development from childhood to adulthood, often focusing on teenagers and young adults, and characterized by physical, psychological, and social changes.

Colonial War

A colonial war refers to a conflict between a colonial power and a native population, or between two colonial powers, typically over control of territories or resources.

Imperial Power

A nation or state that possesses great authority and control over other nations or territories, often through conquest or colonization.

Armed Conflict

refers to a dispute that involves the use of armed force between two or more parties, typically states or organized groups.