The Substantial Similarity of the AICPA and IFAC Codes of Conduct

question 35

Multiple Choice

The substantial similarity of the AICPA and IFAC Codes of Conduct tends to support the concept of:

• A) The ethical conformity doctrine
• B) Self-regulation
• C) Ethical absolutism
• D) Ethical relativism

---

Definitions:

Income Statement

A financial report that shows a company’s revenues, expenses, and net income over a specific period, illustrating the company’s financial performance.

Reconcile

A process of ensuring two sets of records (usually the balances of two accounts) are in agreement.

Variable Costing

A cost accounting method that encompasses solely variable costs involved in production (direct materials, direct labor, and variable manufacturing overhead) for product cost calculation.

Contribution Format

A type of income statement layout that separates fixed costs from variable costs to highlight the contribution margin.