How Are Competence and Due Care Best Described

question 3

Multiple Choice

How are competence and due care best described?

• A)Competence and due care both refer to public accountants (PAs)doing their best for their clients.
• B)Competence refers to technical ability;due care refers to strictly following official pronouncements of accounting principles.
• C)Competence is knowing what do;due care is doing it to the best of one's abilities.
• D)Competence and due care both refer to ongoing technical training.

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Definitions:

Residual Standard Deviation

A measure of the amount of variance in a dataset that is not explained by the predictive variables in a regression model.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating how much its price is expected to move compared to market movements.

Information Ratio

A measure of portfolio returns above the returns of a benchmark, typically used to assess the ability of portfolio managers.

Residual Standard Deviation

A statistical measure used in finance to estimate the deviation of investment returns from an expected return or the performance benchmark, indicating the risk involved.