In Order to Prove Negligence,which Three Elements Must Be Present

question 10

Multiple Choice

In order to prove negligence,which three elements must be present?

• A) Duty of care is owed,duty of care is breached,damage is a direct result
• B) Duty of care is breached,indirect damage is present,duty of care is owed
• C) Duty of care is breached,damage is a direct result,damage is permanent
• D) Duty of care is breached,indirect damage results,damage is permanent

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Definitions:

Reversing Temporary Difference

An accounting adjustment that reverses differences between tax and financial reporting over time.

Originating Temporary Difference

A difference that arises in a particular period between the book income and taxable income, which is expected to reverse in the future.

Municipal Bonds

Debt securities issued by municipalities or local governments to finance public projects, typically offering tax-exempt interest payments to investors.

Permanent Difference

Refers to the discrepancy between book income and tax income that arises from certain items being recognized in either financial accounting or tax accounting, but not in both, leading to a difference that does not reverse over time.