The Underlying Reason for a High Level of Professional Conduct

question 66

Multiple Choice

The underlying reason for a high level of professional conduct, such as exemplified in a code of conduct, for any profession is

• A) the need for public confidence in the quality of service of the profession.
• B) that it provides a safeguard to keep unscrupulous people out.
• C) that it is required by federal legislation.
• D) that it allows licensing agencies to have a yardstick to measure deficient performance.

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Definitions:

Interval Measure

The interval measure is a liquidity metric that estimates how long a company can operate using its current liquid assets without needing additional financing.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as (current assets - inventories) / current liabilities.

Inventory

The goods and materials a business holds for the ultimate goal of resale or processing.

Current Ratio

A measure of how well a company can satisfy its short-term due debts, revealing its liquidity over the year.