Which of the Following Items Is the Most Important Principle

question 37

Multiple Choice

Which of the following items is the most important principle in the "fundamental statements of accepted conduct"?

• A)Maintain the reputation of the profession.
• B)Act with due care.
• C)Maintain independence.
• D)Act with professional courtesy.

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Definitions:

Nonparticipating

A term often used in insurance to describe policies that do not grant the policyholder dividends from the insurer's profits.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common shareholders.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its owners as dividends.

Journal Entries

The recordings of financial transactions in a ledger, marking the first step in the accounting cycle.