Which of the Following Statements Regarding the Competence of an Accountant

question 34

Multiple Choice

Which of the following statements regarding the competence of an accountant is true? The accountant must:

• A) strive continually to improve technical services and keep knowledge up-to-date.
• B) not breach the trust of clients and employers.
• C) not disclose information acquired in the course of professional work, except where there is a legal or professional duty to disclose.
• D) at all times safeguard the interest of the clients and employers, provided it does not conflict with their duty to the community.

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Definitions:

Common Stock

Common stock represents units of ownership in a corporation, granting shareholders voting rights and potentially dividends, but also placing them last in priority for company assets upon liquidation.

Retained Earnings

Profits not distributed to shareholders as dividends but instead reinvested in the company's core business or used to pay off debt.

Valuation Model

A financial model that determines the present value of an asset or business, based on variables such as cash flows and growth rates.

Restructuring

The process of reorganizing a company's structure, operations, or finances with the aim of increasing profitability or efficiency.