Which of the Following Would Be Considered an Operating Asset

question 196

Multiple Choice

Which of the following would be considered an operating asset in return on investment computations?

• A) Land being held for plant expansion.
• B) Treasury stock.
• C) Accounts receivable.
• D) Common stock.

Understand the legal liability of accountants and auditors in the professional practice.

Identify the conditions under which a CPA can be held liable for negligence, fraud, and scienter.

Distinguish between different legal doctrines and rules (e.g., Ultramares rule, Restatement (Second) of Torts) that affect accountant liability.

Recognize the role of privity of contract and the impact of third-party users on accountant's liability.

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Definitions:

Relationship Satisfaction

The extent to which partners in a romantic relationship feel content and fulfilled with their partnership and each other.

Personality Development

The continual process through which individuals develop unique patterns of feeling, thinking, and behaving over the course of their lifetime.

Self-indulgent

The tendency to allow oneself excessive pleasure or luxury, often ignoring potential negative consequences.

Marcia's Identity Statuses

A framework for studying self-identity development in adolescents, based on the presence or absence of crisis and commitment.