Which of the Following Statements Best Describes Prudence

question 42

Multiple Choice

Which of the following statements best describes prudence?

• A)It is the virtue that urges people to implement initiatives that improve overall happiness,even if the actions might threaten their own status.
• B)It is the virtue that urges people to exercise foresight,reason,and discretion to achieve what is good for the community.
• C)It is the virtue that urges people to regulate their emotions as well as their ability to overcome impulsive actions and greed.
• D)It is the virtue that urges people to ensure that everyone connected with an organization gets his or her due.

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Definitions:

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded when cash is received or paid, rather than when they are earned or incurred.

Matching Principle

An accounting principle that dictates expenses should be matched with the revenues they help to generate within the same period.

Generating Revenue

The process by which a company earns income through its business activities, such as selling goods or services.

Ship Building

The construction and design of ships and other floating vessels, a specialized industry that requires engineering and manufacturing skills.