If a CPA Violates the Principles Section of the AICPA

question 39

Multiple Choice

If a CPA violates the Principles section of the AICPA Code of Professional Conduct,the CPA is subject to professional disciplinary actions:

• A) By the SEC or by the AICPA's Disciplinary Committee
• B) By the state accountancy board in the state where the CPA practices accounting
• C) Only if the CPA is still an active (non-retired) accounting practitioner
• D) Never

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Definitions:

Required Reserves

The minimum amount of reserves a bank is required to hold by central bank regulation, aimed at ensuring the bank's liquidity and stability.

Excess Reserves

The surplus funds that a bank or financial institution possesses beyond the mandatory requirements set by regulatory bodies, creditors, or its own internal governance protocols.

Government Securities

Financial instruments issued by a government to finance its activities, generally considered low-risk investments.

Quantity Of Money

The total amount of money available in an economy at a specific time, including both physical currency and digital balances.