Day: March 12, 2025

Ted is a senior partner of a firm of chartered accountants called Tick and Co that is going from the UK to the Bahamas for two weeks, all expenses paid courtesy of the chairman of a client company.

The following statements concerning this situation have been made.

Statement 1 Receiving a benefit in the form of goods, services or hospitality from a client is permissible provided all such receipts are declared, including their origin and value.

Statement 2 Hospitality from clients should not be accepted because to accept such gifts threatens objectivity.

Statement 3 Although accepting most benefits such as gifts is prohibited, it is perfectly in order to accept this type of hospitality from a client.

Identify whether the statements are true or false.

Select ONE answer:

1. Statement 1. True and Statement 2. False and Statement 3. False
2. Statement 1. False and Statement 2. True and Statement 3. False
3. Statement 1. True and Statement 2. False and Statement 3. True
4. Statement 1. False and Statement 2. True and Statement 3. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > False True False.
3. Not correct
4. Not correct

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