Which of the Following Is a Distinguishing Feature of the Standard

question 26

Multiple Choice

Which of the following is a distinguishing feature of the standard of care we are all expected to meet?

• A) The standard of care expected is the same for everyone.
• B) The standard of care is always that of an ordinary,reasonable person.
• C) The standard of care expected is higher for professionals and others with specialized knowledge.
• D) The standard of care expected is to take all possible steps to prevent foreseeable losses.

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Definitions:

Adjusting Entry

An accounting entry made in the journals at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to share in its profits through dividends and capital appreciation.

Sold Shares

Refers to the act of transferring ownership in a corporation's stock from one party to another in exchange for money or other compensation.

Dividend

A portion of a company's earnings that is distributed to shareholders as a return on their investment.