Which of the Following Is a Legitimate Concern for Clients

question 46

Multiple Choice

Which of the following is a legitimate concern for clients or third parties who rely on professionals who provide their services through a limited liability partnership?

• A) the adequacy of the profession's indemnification fund to cover losses
• B) whether individual partners remain liable for their own negligence
• C) whether highly specialized professional protection associations defend claims
• D) whether there will be compensation for losses caused by the professional

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Definitions:

Write Off

The process of recognizing that a portion of a company's assets has become worthless and expensing them to the income statement.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date.