CPAs Who Are Full-Time Employees of a Corporation and Focus

question 27

Multiple Choice

CPAs who are full-time employees of a corporation and focus on the preparation of earnings forecasts and projections invariably learn confidential information about their employer's future prospects.Is such an employee subject to the duty of confidentiality?

• A) Yes, if the employment agreement between the employer and employee establish the duty of confidentiality
• B) Yes, but they would not be subject to this duty if they performed their services as part-time employees
• C) No, because employees in key financial oversight roles are not subject to the duty of confidentiality
• D) Yes, because all CPAs are subject to the duty of confidentiality

Understand the calculation of average sale and collection periods.

Calculate and differentiate between various liquidity and efficiency ratios.

Grasp the concepts of operating cycle and its components.

Analyze financial statements to assess company performance.

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Definitions:

Purplish-Brown

Descriptive of a color that is a mix between purple and brown, often used to describe bruises or certain skin conditions.

KUB

an acronym for Kidneys, Ureters, Bladder, referring to a radiographic examination of these abdominal areas without the use of contrast material.

HD

An abbreviation often used for High Definition, a standard for video and image clarity characterized by a high resolution.

Meaning

The significance or interpretation of something, such as a word, phrase, or concept.