A CPA May Utilize Information Obtained During the Course of a Professional

question 13

Multiple Choice

A CPA may utilize information obtained during the course of a professional accountant-client relationship for personal gain:

• A) Only if the CPA does not disclose this information to others
• B) Only if the source of this information cannot reasonably be discovered by others
• C) Only if the use of this information does not preclude the client from pursuing any opportunities that it otherwise would have desired to pursue
• D) Never

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Definitions:

Quarterly Dividends

Payments made by a corporation to its shareholders, usually on a quarterly basis, from its profits or reserves.

Capital Gains

The profit from the sale of assets or investments when the selling price exceeds the original purchase price.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholders a proportionate claim on the company’s earnings and assets.

Quarterly Dividends

Dividends paid by a corporation to its shareholders at the end of each quarter.