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Listed below are definitions of the six Principles of Professional Conduct. For each, identify the principle being defined.
a. A member should observe the profession's technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member's ability.
b. Members should exercise sensitive professional and moral judgments in all their activities.
c. A member should be free of conflicts of interest in discharging professional responsibilities.
d. A member in public practice should observe the Principles of the Code of Professional Conduct in determining the type and extent of services to be provided.
e. Members should accept the obligation to act in a way that will honor the public trust and demonstrate commitment to professionalism.
f. To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of ________.
Credit Risk
The risk that a borrower will not repay a loan according to the terms, leading to a financial loss for the lender.
Accounting Method
A set of rules used to determine when and how income and expenses are reported in the financial statements, such as cash basis or accrual basis accounting.
Retained Earnings
Retained earnings refer to the portion of net income left over after dividends are paid out to shareholders, which is reinvested into the company.
Retroactive Restatement
Adjusting previously reported financial statements to reflect better understanding or corrections of past errors.
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