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:

Face Value

The nominal value printed on a bond or stock certificate, representing its legal value.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for an asset over its useful life.

Amortization

The process of spreading the cost of an intangible asset over its useful life or paying off a loan in regular installments over a period.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.