Explain the Differences Between Principle-Based Statements and Policy-Based Statement in an Organization's

question 126

Essay

Explain the differences between principle-based statements and policy-based statement in an organization's code of ethics.

Comprehend how misrepresentations in zoning, whether intentional or accidental, can lead to legal actions for deceived parties.

Know the duty of care expected from professionals such as land appraisers towards their clients and third parties relying on their expertise.

Identify situations where a plaintiff may not succeed in an action for negligence due to the circumstances surrounding the duty of care and its breach.

Understand the application of negligent misstatement causing economic loss in professional advice and valuation scenarios.

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Definitions:

Net Cash

The difference between a company's total cash inflows and outflows over a specific period.

Operating Activities

Business actions that are directly related to the production, sale, and delivery of products or services, which are reflected in the company's income and cash flow statements.

Cash Basis

A bookkeeping approach that registers income and expenses at the time cash is exchanged, rather than when they are accrued.

Direct Method

An accounting practice of allocating support department costs directly to producing departments without consideration for interdepartmental services.