Homework Clinic
Social Science Clinic => Accounting => Topic started by: APUS57 on Jul 6, 2018
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Pidcoke Company sold services on account, 23,000 . This transactions should be recorded as a(n)
a. increase to cash.
b. decrease to revenue.
c. increase to accounts receivable.
d. increase to accounts payable.
Question 2
Which of the following statements best defines the adverse interest threat as per AICPA's Guide for Complying with Rules 102-505 (2008)?
A) the threat that a member will not appropriately evaluate the results of a service performed by the member or by an individual in the member's firm as part of providing another service
B) the threat that a member will promote a client or employer's position to the point that his or her objectivity is compromised
C) the threat that a member will not be objective because his or her interests are in opposition to those of a client or employer
D) the threat that, because of a long or close relationship with a client or employer, a member will become too sympathetic to that entity's interests or too accepting of its work
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Answer to Question 1
C
Answer to Question 2
C
Explanation: C) Adverse interest threat is the threat that a member will not be objective because his or her interests are in opposition to those of a client or employer.